Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives Average Rating of "Hold" from Analysts

Key Points

• Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has received an average consensus rating of "Hold" from sixteen analysts, with eleven recommending hold and five recommending buy.
• The company's recent earnings report revealed $5.25 billion in revenue and an EPS of $1.31, surpassing analysts' expectations.
• Cognizant has declared a quarterly dividend of $0.31, resulting in an annualized dividend yield of 1.7%.

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have received a consensus recommendation of "Hold" from the sixteen brokerages that are covering the firm, MarketBeat reports. Eleven analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $86.0667.

A number of analysts have commented on CTSH shares. Guggenheim raised shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 target price for the company in a report on Friday, July 18th. Wall Street Zen lowered shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Evercore ISI initiated coverage on shares of Cognizant Technology Solutions in a report on Thursday, July 17th. They issued an "outperform" rating and a $100.00 target price on the stock. JPMorgan Chase & Co. cut their target price on shares of Cognizant Technology Solutions from $101.00 to $89.00 and set an "overweight" rating on the stock in a report on Wednesday, August 20th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cognizant Technology Solutions in a report on Thursday, July 17th. They issued a "hold" rating and a $80.00 price target for the company.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter valued at $214,000. Lido Advisors LLC lifted its position in shares of Cognizant Technology Solutions by 81.5% during the 4th quarter. Lido Advisors LLC now owns 19,113 shares of the information technology service provider's stock valued at $1,470,000 after acquiring an additional 8,585 shares during the period. Voleon Capital Management LP bought a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $853,000. Mercer Global Advisors Inc. ADV increased its stake in shares of Cognizant Technology Solutions by 4.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 157,937 shares of the information technology service provider's stock valued at $12,145,000 after purchasing an additional 6,277 shares during the last quarter. Finally, AXA S.A. increased its stake in shares of Cognizant Technology Solutions by 1.3% in the 4th quarter. AXA S.A. now owns 1,113,396 shares of the information technology service provider's stock valued at $85,620,000 after purchasing an additional 13,888 shares during the last quarter. Institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Trading Down 1.2%

NASDAQ:CTSH traded down $0.89 during trading hours on Friday, hitting $70.93. 252,947 shares of the stock were exchanged, compared to its average volume of 3,801,942. The company's 50 day moving average is $73.97 and its two-hundred day moving average is $76.71. Cognizant Technology Solutions has a twelve month low of $65.52 and a twelve month high of $90.82. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $34.64 billion, a P/E ratio of 14.40, a price-to-earnings-growth ratio of 1.50 and a beta of 0.93.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The information technology service provider reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.05. Cognizant Technology Solutions had a return on equity of 16.77% and a net margin of 11.89%.The firm had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.17 billion. During the same quarter in the prior year, the business earned $1.17 EPS. The business's revenue for the quarter was up 8.1% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2025 guidance at 5.080-5.220 EPS. Q3 2025 guidance at EPS. On average, sell-side analysts anticipate that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th were paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Monday, August 18th. Cognizant Technology Solutions's dividend payout ratio (DPR) is currently 25.20%.

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.