Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Lowered to $55.00 at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Cognizant Technology Solutions from $74 to $55, while keeping an overweight rating. The new target still implies about 22% upside from the prior close.
• Other analysts have also adjusted their views recently, with several lowering targets and one upgrading the stock; overall, the consensus rating remains Hold with an average price target of $62.
• Cognizant shares rose to $44.95 on Friday after the company posted better-than-expected Q1 earnings and announced a $2 billion share repurchase program, signaling confidence in the stock's value.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its target price reduced by JPMorgan Chase & Co. from $74.00 to $55.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the information technology service provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 22.34% from the company's previous close.

Several other research analysts have also recently commented on CTSH. Jefferies Financial Group decreased their target price on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating for the company in a research report on Monday, May 4th. Wedbush upgraded Cognizant Technology Solutions from a "neutral" rating to an "outperform" rating and boosted their price objective for the stock from $56.00 to $70.00 in a research report on Monday, June 8th. Robert W. Baird decreased their price objective on Cognizant Technology Solutions from $72.00 to $55.00 and set a "neutral" rating for the company in a report on Friday, July 10th. Dbs Bank lowered their target price on Cognizant Technology Solutions from $80.00 to $66.00 in a research report on Thursday, May 7th. Finally, Mizuho cut their target price on Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $62.00.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ CTSH traded up $1.95 during mid-day trading on Friday, hitting $44.95. The company had a trading volume of 2,684,082 shares, compared to its average volume of 8,202,775. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03. The stock has a market cap of $21.30 billion, a price-to-earnings ratio of 9.76, a PEG ratio of 0.94 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The firm's 50 day simple moving average is $47.17 and its two-hundred day simple moving average is $59.77.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same period last year, the company earned $1.23 earnings per share. The firm's revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities research analysts forecast that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions announced that its board has approved a share repurchase program on Monday, May 18th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to purchase up to 9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $690,959,000. GQG Partners LLC purchased a new position in shares of Cognizant Technology Solutions in the fourth quarter worth approximately $673,651,000. Assenagon Asset Management S.A. raised its holdings in shares of Cognizant Technology Solutions by 925.5% during the second quarter. Assenagon Asset Management S.A. now owns 3,652,358 shares of the information technology service provider's stock valued at $141,456,000 after acquiring an additional 3,296,205 shares during the period. Cibc World Markets Corp purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at approximately $234,671,000. Finally, Pzena Investment Management LLC boosted its stake in Cognizant Technology Solutions by 14.9% in the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock worth $1,243,096,000 after purchasing an additional 2,633,683 shares during the period. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions NASDAQ: CTSH is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.

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