Cognizant Technology Solutions Co. (NASDAQ:CTSH) Receives Consensus Rating of "Hold" from Analysts

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH - Get Free Report) have been given an average rating of "Hold" by the eighteen research firms that are presently covering the company, MarketBeat.com reports. Fourteen research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $85.00.

Several equities research analysts recently weighed in on CTSH shares. UBS Group reduced their target price 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. JPMorgan Chase & Co. upgraded Cognizant Technology Solutions from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $88.00 to $98.00 in a report on Monday. Susquehanna upgraded Cognizant Technology Solutions from a "neutral" rating to a "positive" rating and upped their price target for the stock from $77.00 to $90.00 in a report on Thursday, May 1st. Mizuho upgraded Cognizant Technology Solutions to a "hold" rating in a report on Wednesday, March 19th. Finally, BMO Capital Markets upped their price target on Cognizant Technology Solutions from $88.00 to $94.00 and gave the stock a "market perform" rating in a report on Thursday, February 6th.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Duncker Streett & Co. Inc. acquired a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at $28,000. Park Square Financial Group LLC bought a new stake in Cognizant Technology Solutions in the fourth quarter valued at $36,000. SBI Securities Co. Ltd. bought a new stake in Cognizant Technology Solutions in the fourth quarter valued at $36,000. Spire Wealth Management grew its position in Cognizant Technology Solutions by 74.7% in the fourth quarter. Spire Wealth Management now owns 477 shares of the information technology service provider's stock valued at $37,000 after acquiring an additional 204 shares during the period. Finally, Morton Brown Family Wealth LLC bought a new stake in Cognizant Technology Solutions in the fourth quarter valued at $37,000. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Cognizant Technology Solutions Trading Down 1.2%

Shares of NASDAQ CTSH opened at $79.99 on Thursday. The stock has a market cap of $39.43 billion, a price-to-earnings ratio of 17.74, a PEG ratio of 2.11 and a beta of 0.93. The business has a 50 day simple moving average of $75.11 and a 200 day simple moving average of $78.94. Cognizant Technology Solutions has a 52 week low of $63.79 and a 52 week high of $90.82. 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 (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The information technology service provider reported $1.23 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $5.06 billion. During the same quarter in the previous year, the business posted $1.12 EPS. The firm's quarterly revenue was up 7.5% compared to the same quarter last year. On average, research analysts predict that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 28th. Investors of record on Monday, May 19th will be paid a $0.31 dividend. The ex-dividend date of this dividend is Monday, May 19th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.55%. Cognizant Technology Solutions's payout ratio is 26.11%.

Cognizant Technology Solutions declared that its Board of Directors has approved a share repurchase plan on Tuesday, March 25th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its stock is undervalued.

About Cognizant Technology Solutions

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.

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