Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has received a consensus rating of "Hold" from fifteen brokerages, with ten recommending hold and five issuing buy ratings.
• The company recently reported $1.31 earnings per share (EPS) for the quarter, exceeding estimates, while revenue was $5.25 billion, showcasing an 8.1% year-over-year growth.
• Cognizant announced a quarterly dividend of $0.31, translating to an annualized dividend yield of 1.8%, with a payout ratio of 25.20%.

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have received a consensus recommendation of "Hold" from the fifteen ratings firms that are currently covering the firm, MarketBeat.com reports. Ten research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $86.7857.

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

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors have recently bought and sold shares of the company. Hilltop National Bank purchased a new position in Cognizant Technology Solutions during the 2nd quarter worth $27,000. NewSquare Capital LLC raised its holdings in Cognizant Technology Solutions by 71.8% during 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. Park Square Financial Group LLC purchased a new position in Cognizant Technology Solutions during the fourth quarter worth about $36,000. Geneos Wealth Management Inc. lifted its position in 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 valued at $44,000 after purchasing an additional 309 shares during the period. Finally, WPG Advisers LLC purchased a new stake in Cognizant Technology Solutions in the 1st quarter valued at approximately $61,000. 92.44% of the stock is owned by institutional investors and hedge funds.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ:CTSH opened at $67.67 on Wednesday. Cognizant Technology Solutions has a 12 month low of $65.17 and a 12 month high of $90.82. The firm has a market capitalization of $33.05 billion, a P/E ratio of 13.75, a P/E/G ratio of 1.42 and a beta of 0.93. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.41 and a quick ratio of 2.41. The company's fifty day moving average price is $71.59 and its 200 day moving average price is $75.13.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued 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 company had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.17 billion. During the same quarter last year, the company posted $1.17 earnings per share. The business'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 predict that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th were issued a $0.31 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.8%. Cognizant Technology Solutions's payout ratio is presently 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.

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