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

Key Points

• Cognizant Technology Solutions Corporation has received an average rating of "Hold" from 16 analysts, with 11 stating 'hold' and 5 giving it a 'buy' rating.
• The company's stock recently opened at $66.08, with a 12-month price target averaging $86.79 among brokerages.
• In its latest earnings report, Cognizant reported $1.31 EPS, exceeding expectations, and announced a quarterly dividend of $0.31.

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have received an average recommendation of "Hold" from the sixteen analysts that are presently covering the company, Marketbeat.com reports. Eleven analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $86.7857.

Several research analysts have recently weighed in on the stock. Guggenheim upgraded shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 price target for the company in a report on Friday, July 18th. Wall Street Zen cut shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Evercore ISI assumed coverage on shares of Cognizant Technology Solutions in a report on Thursday, July 17th. They issued an "outperform" rating and a $100.00 price target for the company. 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. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Cognizant Technology Solutions in a report on Wednesday, October 8th.

Cognizant Technology Solutions Stock Up 0.9%

Cognizant Technology Solutions stock opened at $66.08 on Friday. The company's 50 day simple moving average is $69.23 and its 200 day simple moving average is $73.70. Cognizant Technology Solutions has a fifty-two week low of $65.15 and a fifty-two week high of $90.82. The firm has a market capitalization of $32.27 billion, a price-to-earnings ratio of 13.43, a PEG ratio of 1.37 and a beta of 0.95. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.41 and a quick ratio of 2.41.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The information technology service provider reported $1.31 earnings per share for the quarter, topping the consensus estimate of $1.26 by $0.05. Cognizant Technology Solutions had a net margin of 11.89% and a return on equity of 16.77%. 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 quarterly revenue 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. As a group, sell-side analysts anticipate that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th were issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Monday, August 18th. Cognizant Technology Solutions's dividend payout ratio is 25.20%.

Institutional Trading of Cognizant Technology Solutions

Institutional investors have recently made changes to their positions in the business. Hilltop National Bank bought a new stake in shares of Cognizant Technology Solutions in the second quarter worth $27,000. NewSquare Capital LLC lifted its position in shares of Cognizant Technology Solutions by 71.8% in the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider's stock worth $29,000 after purchasing an additional 153 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in shares of Cognizant Technology Solutions by 118.8% in the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider's stock worth $44,000 after purchasing an additional 309 shares in the last quarter. WPG Advisers LLC bought a new stake in shares of Cognizant Technology Solutions in the first quarter worth $61,000. Finally, Cary Street Partners Investment Advisory LLC bought a new stake in shares of Cognizant Technology Solutions in the second quarter worth $64,000. Institutional investors own 92.44% of the company's stock.

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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