Cognizant Technology Solutions (NASDAQ:CTSH) Downgraded by Wall Street Zen to Hold

Key Points

• Cognizant Technology Solutions has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a cautious outlook on the stock's performance.
• Analysts have mixed views, with a consensus rating of "Hold" and an average price target of $85.88, following multiple comments from different investment firms.
• The company reported an earnings per share (EPS) of $1.31 for the last quarter, exceeding analyst expectations, with a revenue of $5.25 billion, marking an 8.1% increase year-over-year.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other equities analysts have also commented on the stock. Needham & Company LLC reissued a "hold" rating on shares of Cognizant Technology Solutions in a report on Thursday, May 1st. JPMorgan Chase & Co. decreased their target price on shares of Cognizant Technology Solutions from $98.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They issued a "hold" rating and a $80.00 price target on the stock. Evercore ISI initiated coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They issued an "outperform" rating and a $100.00 price target on the stock. Finally, Robert W. Baird raised their price target on shares of Cognizant Technology Solutions from $78.00 to $82.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Fourteen research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat, Cognizant Technology Solutions has a consensus rating of "Hold" and an average price target of $85.88.

Cognizant Technology Solutions Price Performance

NASDAQ:CTSH opened at $70.59 on Friday. Cognizant Technology Solutions has a 52 week low of $65.52 and a 52 week high of $90.82. The firm has a market cap of $34.80 billion, a price-to-earnings ratio of 14.35, a P/E/G ratio of 1.52 and a beta of 0.90. The firm's 50-day simple moving average is $77.93 and its 200 day simple moving average is $78.60. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.22 and a current ratio of 2.41.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings results 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 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 period last year, the firm earned $1.17 earnings per share. Cognizant Technology Solutions's revenue for the quarter was up 8.1% compared to the same quarter last year. As a group, sell-side analysts predict that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

Institutional Trading of Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. CoreCap Advisors LLC increased its holdings in shares of 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 valued at $55,000 after acquiring an additional 126 shares in the last quarter. Unison Advisors LLC increased its holdings in Cognizant Technology Solutions by 0.5% in the 2nd quarter. Unison Advisors LLC now owns 29,843 shares of the information technology service provider's stock worth $2,329,000 after buying an additional 135 shares in the last quarter. Connecticut Wealth Management LLC increased its holdings in Cognizant Technology Solutions by 0.8% in the 4th quarter. Connecticut Wealth Management LLC now owns 17,650 shares of the information technology service provider's stock worth $1,357,000 after buying an additional 138 shares in the last quarter. Covestor Ltd increased its holdings in Cognizant Technology Solutions by 3.3% in the 4th quarter. Covestor Ltd now owns 4,389 shares of the information technology service provider's stock worth $338,000 after buying an additional 139 shares in the last quarter. Finally, Conning Inc. increased its holdings in Cognizant Technology Solutions by 4.4% in the 1st quarter. Conning Inc. now owns 3,547 shares of the information technology service provider's stock worth $271,000 after buying an additional 149 shares in the last quarter. Institutional investors own 92.44% of the company's stock.

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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