Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 12-Month Low - Should You Sell?

Key Points

• Cognizant Technology Solutions' share price recently hit a new **52-week low** at **$65.15**, closing at **$65.62** with a trading volume exceeding **2 million shares**.
• Analyst ratings vary, with **five analysts** giving a **buy** rating and **eleven giving a hold**, resulting in a consensus rating of **"Hold"** and an average price target of **$86.79**.
• The company recently reported **Q2 earnings per share of $1.31**, exceeding expectations, and set its **FY 2025 guidance** between **$5.080-5.220 EPS**.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The company traded as low as $65.15 and last traded at $65.62, with a volume of 2051052 shares trading hands. The stock had previously closed at $66.75.

Analyst Ratings Changes

CTSH has been the subject of a number of research analyst reports. Guggenheim raised Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 target price for the company in a research report on Friday, July 18th. Wall Street Zen lowered Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Deutsche Bank Aktiengesellschaft started coverage on Cognizant Technology Solutions in a report on Thursday, July 17th. They set a "hold" rating and a $80.00 price objective for the company. Weiss Ratings reissued a "hold (c+)" rating on shares of Cognizant Technology Solutions in a report on Wednesday, October 8th. Finally, Evercore ISI started coverage on Cognizant Technology Solutions in a report on Thursday, July 17th. They set an "outperform" rating and a $100.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, Cognizant Technology Solutions presently has a consensus rating of "Hold" and an average price target of $86.79.

Cognizant Technology Solutions Price Performance

The business has a 50 day moving average price of $69.37 and a two-hundred day moving average price of $73.87. The stock has a market cap of $31.96 billion, a PE ratio of 13.30, a P/E/G ratio of 1.40 and a beta of 0.95. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.41 and a current ratio of 2.41.

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 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 firm had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.17 billion. During the same quarter in the previous year, the business earned $1.17 EPS. The company's 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. Research analysts expect that Cognizant Technology Solutions Corporation will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

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

Hedge Funds Weigh In On Cognizant Technology Solutions

Institutional investors have recently bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. lifted its stake in Cognizant Technology Solutions by 6.8% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 174,287 shares of the information technology service provider's stock valued at $13,600,000 after purchasing an additional 11,037 shares during the last quarter. LBP AM SA purchased a new position in Cognizant Technology Solutions in the second quarter valued at approximately $8,541,000. Ritholtz Wealth Management lifted its stake in Cognizant Technology Solutions by 21.0% in the first quarter. Ritholtz Wealth Management now owns 10,531 shares of the information technology service provider's stock valued at $806,000 after purchasing an additional 1,827 shares during the last quarter. Envestnet Asset Management Inc. lifted its position in shares of Cognizant Technology Solutions by 1.4% during the first quarter. Envestnet Asset Management Inc. now owns 500,039 shares of the information technology service provider's stock worth $38,253,000 after acquiring an additional 7,105 shares in the last quarter. Finally, Leo Wealth LLC purchased a new stake in shares of Cognizant Technology Solutions during the second quarter worth $912,000. Hedge funds and other 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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