Cognizant Technology Solutions Corporation Plans Quarterly Dividend of $0.31 (NASDAQ:CTSH)

Key Points

• Cognizant Technology Solutions Corporation declared a quarterly dividend of $0.31 per share, translating to an annualized dividend of $1.24 and a yield of 1.69%, to be paid on August 26th to shareholders of record as of August 18th.
• The company reported an EPS of $1.31 for the last quarter, surpassing analyst expectations of $1.26, and is projected to maintain a payout ratio of around 23.2% in the next year.
• Several analysts have upgraded their ratings on Cognizant's stock, with a consensus target price of $85.88, indicating mixed investor sentiment but a general expectation of stability.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Shareholders of record on Monday, August 18th will be paid a dividend of 0.31 per share by the information technology service provider on Tuesday, August 26th. This represents a c) dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Monday, August 18th.

Cognizant Technology Solutions has a payout ratio of 22.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Cognizant Technology Solutions to earn $5.35 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 23.2%.

Cognizant Technology Solutions Stock Down 1.6%

Shares of NASDAQ CTSH traded down $1.17 during mid-day trading on Friday, reaching $70.59. 5,356,605 shares of the company's stock were exchanged, compared to its average volume of 3,446,974. The firm has a market capitalization of $34.80 billion, a price-to-earnings ratio of 14.35, a PEG ratio of 1.49 and a beta of 0.90. The company has a current ratio of 2.41, a quick ratio of 2.22 and a debt-to-equity ratio of 0.04. The business has a fifty day simple moving average of $77.93 and a 200 day simple moving average of $78.61. Cognizant Technology Solutions has a twelve month low of $65.52 and a twelve month high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, July 30th. The information technology service provider reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.17 billion. During the same quarter last year, the firm earned $1.17 EPS. Cognizant Technology Solutions's revenue for the quarter was up 8.1% compared to the same quarter last year. As a group, equities analysts expect that Cognizant Technology Solutions will post 4.98 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on CTSH shares. JPMorgan Chase & Co. decreased their target price on Cognizant Technology Solutions from $98.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Needham & Company LLC reaffirmed a "hold" rating on shares of Cognizant Technology Solutions in a report on Thursday, May 1st. Evercore ISI began coverage on Cognizant Technology Solutions in a report on Thursday, July 17th. They issued an "outperform" rating and a $100.00 price objective on the stock. Robert W. Baird upped their price objective on Cognizant Technology Solutions from $78.00 to $82.00 and gave the company a "neutral" rating in a report on Thursday, May 1st. Finally, Guggenheim raised Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 price objective on the stock in a report on Friday, July 18th. Fourteen investment analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat, Cognizant Technology Solutions has a consensus rating of "Hold" and an average target price of $85.88.

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.