Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Sees Significant Increase in Short Interest

Key Points

• Cognizant Technology Solutions Corporation (NASDAQ:CTSH) experienced a 32.5% increase in short interest during August, totaling 22,740,000 shares.
• Wall Street analysts have mixed ratings on the stock, with five analysts rating it as a "Buy" and eleven as a "Hold," while the average target price is set at $86.07.
• The company recently declared a quarterly dividend of $0.31 per share, representing a yield of 1.7% and a payout ratio of 25.20%.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) was the target of a large increase in short interest in the month of August. As of August 15th, there was short interest totaling 22,740,000 shares, anincreaseof32.5% from the July 31st total of 17,160,000 shares. Approximately4.7% of the shares of the company are short sold. Based on an average daily trading volume, of 3,760,000 shares, the short-interest ratio is presently 6.0 days. Based on an average daily trading volume, of 3,760,000 shares, the short-interest ratio is presently 6.0 days. Approximately4.7% of the shares of the company are short sold.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on CTSH. Wall Street Zen downgraded Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. JPMorgan Chase & Co. reduced their price target 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. Evercore ISI started coverage on shares of Cognizant Technology Solutions in a research report on Thursday, July 17th. They set an "outperform" rating and a $100.00 price objective for the company. Deutsche Bank Aktiengesellschaft started coverage on Cognizant Technology Solutions in a research note on Thursday, July 17th. They set a "hold" rating and a $80.00 price target on the stock. Finally, Guggenheim upgraded shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 price target on the stock in a research note on Friday, July 18th. Five research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $86.07.

Cognizant Technology Solutions Stock Down 0.1%

Shares of CTSH opened at $71.14 on Tuesday. The business's 50 day simple moving average is $73.59 and its 200-day simple moving average is $76.21. Cognizant Technology Solutions has a one year low of $65.52 and a one year high of $90.82. The company has a market capitalization of $34.75 billion, a P/E ratio of 14.51, a PEG ratio of 1.50 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.

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 EPS for the quarter, topping 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 company had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.17 billion. During the same quarter in the previous year, the firm earned $1.17 earnings per share. The business's revenue was up 8.1% on a year-over-year basis. 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 EPS for the current fiscal 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 paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, August 18th. Cognizant Technology Solutions's dividend payout ratio is 25.20%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CTSH. Hilltop National Bank bought a new position in Cognizant Technology Solutions during the second quarter worth about $27,000. NewSquare Capital LLC boosted its position in shares of 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 acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $36,000. Geneos Wealth Management Inc. increased its position in shares of Cognizant Technology Solutions by 118.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider's stock valued at $44,000 after buying an additional 309 shares in the last quarter. Finally, CoreCap Advisors LLC lifted its holdings in Cognizant Technology Solutions by 21.5% during the fourth quarter. CoreCap Advisors LLC now owns 711 shares of the information technology service provider's stock worth $55,000 after acquiring an additional 126 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

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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