Cognizant Technology Solutions Co. (NASDAQ:CTSH) Given Consensus Recommendation of "Hold" by Analysts

Cognizant Technology Solutions Co. (NASDAQ:CTSH - Get Free Report) has earned a consensus rating of "Hold" from the eighteen brokerages that are presently covering the stock, Marketbeat.com reports. Fourteen investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $84.27.

Several equities research analysts have recently weighed in on CTSH shares. Needham & Company LLC reissued a "hold" rating on shares of Cognizant Technology Solutions in a research report on Thursday. UBS Group lowered their price objective on Cognizant Technology Solutions from $93.00 to $88.00 and set a "neutral" rating for the company in a report on Monday, March 17th. Barclays reduced their target price on Cognizant Technology Solutions from $103.00 to $90.00 and set an "overweight" rating on the stock in a report on Friday, April 25th. Morgan Stanley lowered their price target on Cognizant Technology Solutions from $85.00 to $80.00 and set an "equal weight" rating for the company in a report on Wednesday, March 12th. Finally, Guggenheim restated a "neutral" rating on shares of Cognizant Technology Solutions in a research note on Wednesday, April 23rd.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Cognizant Technology Solutions by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 59,028,485 shares of the information technology service provider's stock valued at $4,539,290,000 after purchasing an additional 515,881 shares during the period. Geode Capital Management LLC increased its position in shares of Cognizant Technology Solutions by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 13,437,687 shares of the information technology service provider's stock worth $1,032,239,000 after acquiring an additional 157,464 shares in the last quarter. FMR LLC raised its holdings in shares of Cognizant Technology Solutions by 1.1% during the fourth quarter. FMR LLC now owns 11,147,006 shares of the information technology service provider's stock valued at $857,205,000 after acquiring an additional 123,745 shares during the period. Invesco Ltd. boosted its stake in Cognizant Technology Solutions by 2.8% in the 4th quarter. Invesco Ltd. now owns 10,655,180 shares of the information technology service provider's stock worth $819,383,000 after purchasing an additional 287,973 shares during the period. Finally, Norges Bank purchased a new position in Cognizant Technology Solutions during the 4th quarter worth approximately $527,719,000. Institutional investors and hedge funds own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Up 5.0 %

Shares of CTSH stock traded up $3.68 during trading hours on Friday, reaching $77.25. The company had a trading volume of 1,186,498 shares, compared to its average volume of 3,923,140. The stock's fifty day simple moving average is $76.09 and its 200 day simple moving average is $78.57. The company has a market capitalization of $38.21 billion, a P/E ratio of 17.16, a price-to-earnings-growth ratio of 2.11 and a beta of 1.03. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.09 and a current ratio of 2.09. Cognizant Technology Solutions has a twelve month low of $63.79 and a twelve month high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, April 30th. The information technology service provider reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.03. Cognizant Technology Solutions had a return on equity of 16.78% and a net margin of 11.35%. The business had revenue of $5.12 billion for the quarter, compared to analyst estimates of $5.06 billion. During the same period in the previous year, the company earned $1.12 earnings per share. The company's revenue for the quarter was up 7.5% compared to the same quarter last year. As a group, sell-side analysts expect that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th were given a dividend of $0.31 per share. The ex-dividend date was Tuesday, February 18th. This is a boost from Cognizant Technology Solutions's previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a dividend yield of 1.61%. Cognizant Technology Solutions's dividend payout ratio (DPR) is 27.49%.

Cognizant Technology Solutions declared that its board has initiated a stock buyback program on Tuesday, March 25th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.