Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives $85.00 Consensus Price Target from Analysts

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have received an average recommendation of "Hold" from the eighteen research firms that are presently covering the company, MarketBeat Ratings reports. Fourteen investment analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $85.00.

CTSH has been the subject of several analyst reports. UBS Group cut their target price on Cognizant Technology Solutions from $93.00 to $88.00 and set a "neutral" rating for the company in a research report on Monday, March 17th. Guggenheim reiterated a "neutral" rating on shares of Cognizant Technology Solutions in a research note on Wednesday, April 23rd. Susquehanna upgraded shares of Cognizant Technology Solutions from a "neutral" rating to a "positive" rating and boosted their target price for the company from $77.00 to $90.00 in a research note on Thursday, May 1st. Needham & Company LLC reaffirmed a "hold" rating on shares of Cognizant Technology Solutions in a report on Thursday, May 1st. Finally, Mizuho upgraded shares of Cognizant Technology Solutions to a "hold" rating in a research report on Wednesday, March 19th.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds have recently added to or reduced their stakes in the company. Voya Investment Management LLC raised its holdings in Cognizant Technology Solutions by 2.1% during the 1st quarter. Voya Investment Management LLC now owns 1,225,265 shares of the information technology service provider's stock worth $93,733,000 after purchasing an additional 25,462 shares during the last quarter. Modern Wealth Management LLC acquired a new stake in shares of Cognizant Technology Solutions during the 1st quarter worth approximately $345,000. Strs Ohio bought a new stake in shares of Cognizant Technology Solutions during the first quarter worth approximately $2,834,000. Jacobi Capital Management LLC lifted its holdings in Cognizant Technology Solutions by 3.0% in the first quarter. Jacobi Capital Management LLC now owns 7,497 shares of the information technology service provider's stock valued at $573,000 after buying an additional 219 shares during the period. Finally, Chelsea Counsel Co. bought a new position in Cognizant Technology Solutions in the first quarter valued at approximately $480,000. Institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Performance

CTSH stock traded down $0.57 during midday trading on Monday, hitting $79.14. The stock had a trading volume of 2,914,965 shares, compared to its average volume of 3,563,368. Cognizant Technology Solutions has a 52 week low of $65.52 and a 52 week high of $90.82. The company has a current ratio of 2.22, a quick ratio of 2.22 and a debt-to-equity ratio of 0.04. The stock has a 50-day simple moving average of $77.15 and a 200 day simple moving average of $79.03. The firm has a market capitalization of $39.01 billion, a price-to-earnings ratio of 16.66, a P/E/G ratio of 1.82 and a beta of 0.98.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Wednesday, April 30th. The information technology service provider reported $1.23 EPS for the quarter, topping analysts' consensus estimates of $1.20 by $0.03. The company had revenue of $5.12 billion during the quarter, compared to the consensus estimate of $5.06 billion. Cognizant Technology Solutions had a net margin of 11.73% and a return on equity of 16.73%. The firm's revenue for the quarter was up 7.5% compared to the same quarter last year. During the same period last year, the firm earned $1.12 EPS. As a group, equities research analysts anticipate that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

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

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 28th. Shareholders of record on Monday, May 19th were given a $0.31 dividend. The ex-dividend date of this dividend was Monday, May 19th. This represents a $1.24 dividend on an annualized basis and a yield of 1.57%. Cognizant Technology Solutions's payout ratio is 26.11%.

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.