Citigroup Lowers Cognizant Technology Solutions (NASDAQ:CTSH) Price Target to $45.00

Key Points

• Citigroup cut its price target on Cognizant Technology Solutions to $45 from $55, while keeping a neutral rating on the stock.
• Other analysts have also been trimming targets, and the consensus view on CTSH remains Hold with an average price target of $64.26.
• Cognizant shares rose 3.7% to $44.12, and the company recently reported earnings that beat EPS estimates and authorized a $2 billion stock buyback.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target decreased by stock analysts at Citigroup from $55.00 to $45.00 in a report issued on Monday,Benzinga reports. The firm presently has a "neutral" rating on the information technology service provider's stock. Citigroup's target price indicates a potential upside of 1.98% from the company's current price.

CTSH has been the topic of several other research reports. Robert W. Baird cut their price target on Cognizant Technology Solutions from $72.00 to $55.00 and set a "neutral" rating on the stock in a report on Friday. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on shares of Cognizant Technology Solutions in a research note on Friday. HSBC decreased their target price on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Guggenheim lowered their target price on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Finally, Morgan Stanley set a $44.00 price target on shares of Cognizant Technology Solutions and gave the stock an "equal weight" rating in a research report on Tuesday, June 23rd. Eleven equities research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat, Cognizant Technology Solutions has an average rating of "Hold" and a consensus price target of $64.26.

Cognizant Technology Solutions Stock Up 3.7%

Shares of NASDAQ:CTSH traded up $1.55 during midday trading on Monday, reaching $44.12. The company had a trading volume of 4,183,702 shares, compared to its average volume of 8,232,532. The stock has a market capitalization of $20.91 billion, a P/E ratio of 9.60, a PEG ratio of 0.90 and a beta of 0.87. The stock's fifty day moving average price is $48.26 and its 200-day moving average price is $62.33. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. Cognizant Technology Solutions has a one year low of $37.08 and a one year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. The company had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The company's revenue was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts expect that Cognizant Technology Solutions will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions declared that its board has initiated a stock buyback plan on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of hedge funds have recently modified their holdings of CTSH. Tema ETFs LLC raised its holdings in Cognizant Technology Solutions by 23.0% during the 2nd quarter. Tema ETFs LLC now owns 10,528 shares of the information technology service provider's stock worth $408,000 after buying an additional 1,968 shares during the period. Hennion & Walsh Asset Management Inc. increased its position in shares of Cognizant Technology Solutions by 9.8% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 5,600 shares of the information technology service provider's stock worth $217,000 after acquiring an additional 498 shares in the last quarter. Polianta Ltd lifted its position in shares of Cognizant Technology Solutions by 82.4% in the 2nd quarter. Polianta Ltd now owns 44,700 shares of the information technology service provider's stock valued at $1,731,000 after acquiring an additional 20,200 shares in the last quarter. Chesley Taft & Associates LLC lifted its holdings in shares of Cognizant Technology Solutions by 9.1% in the second quarter. Chesley Taft & Associates LLC now owns 30,433 shares of the information technology service provider's stock valued at $1,179,000 after purchasing an additional 2,542 shares in the last quarter. Finally, Czech National Bank boosted its position in Cognizant Technology Solutions by 3.6% during the 2nd quarter. Czech National Bank now owns 134,881 shares of the information technology service provider's stock worth $5,224,000 after acquiring an additional 4,633 shares during the period. 92.44% of the stock is currently owned by institutional investors and hedge funds.

About Cognizant Technology Solutions

Cognizant Technology Solutions NASDAQ: CTSH is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.

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