Cognizant Technology Solutions Co. (NASDAQ:CTSH) Short Interest Up 22.3% in May

Cognizant Technology Solutions Co. (NASDAQ:CTSH - Get Free Report) saw a significant growth in short interest in May. As of May 15th, there was short interest totalling 18,730,000 shares, a growth of 22.3% from the April 30th total of 15,310,000 shares. Based on an average daily trading volume, of 4,150,000 shares, the short-interest ratio is presently 4.5 days. Currently, 3.8% of the company's stock are sold short.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ:CTSH traded down $0.04 on Thursday, reaching $79.70. The company's stock had a trading volume of 1,263,095 shares, compared to its average volume of 3,568,947. The stock's 50-day moving average is $75.50 and its two-hundred day moving average is $78.98. 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 current ratio of 2.09 and a quick ratio of 2.09. The stock has a market capitalization of $39.29 billion, a P/E ratio of 17.67, a PEG ratio of 2.11 and a beta of 0.98.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly 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 net margin of 11.35% and a return on equity of 16.78%. 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 business posted $1.12 earnings per share. The business's revenue was up 7.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 28th. Shareholders of record on Monday, May 19th were issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.56%. The ex-dividend date of this dividend was Monday, May 19th. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 26.11%.

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 25th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the information technology service provider to reacquire up to 5.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors and hedge funds have recently modified their holdings of CTSH. Janney Montgomery Scott LLC raised its stake in Cognizant Technology Solutions by 7.3% during the fourth quarter. Janney Montgomery Scott LLC now owns 19,931 shares of the information technology service provider's stock worth $1,533,000 after purchasing an additional 1,360 shares during the period. Brighton Jones LLC purchased a new position in Cognizant Technology Solutions during the fourth quarter worth approximately $214,000. Chicago Partners Investment Group LLC purchased a new position in Cognizant Technology Solutions during the fourth quarter worth approximately $443,000. China Universal Asset Management Co. Ltd. raised its stake in Cognizant Technology Solutions by 28.3% during the fourth quarter. China Universal Asset Management Co. Ltd. now owns 8,069 shares of the information technology service provider's stock worth $621,000 after purchasing an additional 1,782 shares during the period. Finally, Spire Wealth Management raised its stake in Cognizant Technology Solutions by 74.7% during the fourth quarter. Spire Wealth Management now owns 477 shares of the information technology service provider's stock worth $37,000 after purchasing an additional 204 shares during the period. Hedge funds and other institutional investors own 92.44% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. TD Securities boosted their price objective on shares of Cognizant Technology Solutions from $77.00 to $79.00 and gave the stock a "hold" rating in a research note on Thursday, May 1st. Mizuho raised shares of Cognizant Technology Solutions to a "hold" rating in a research note on Wednesday, March 19th. Barclays reduced their price objective on shares of Cognizant Technology Solutions from $103.00 to $90.00 and set an "overweight" rating for the company in a research note on Friday, April 25th. Guggenheim reissued a "neutral" rating on shares of Cognizant Technology Solutions in a research note on Wednesday, April 23rd. Finally, Morgan Stanley reduced their price target on Cognizant Technology Solutions from $85.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Wednesday, March 12th. Fourteen research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $85.00.

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.