Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 52-Week Low - Time to Sell?

Key Points

• Cognizant Technology Solutions (NASDAQ:CTSH) shares hit a new 52-week low of $65.17 during trading, signaling concerns over the company's current performance.
• Analysts provide mixed ratings, with Deutsche Bank issuing a "hold" rating and a price target of $80, while Evercore ISI rated it "outperform" with a $100 target, indicating varying outlooks on the stock's value.
• The company reported earnings of $1.31 per share for the last quarter, exceeding analysts' estimates, while posting a year-over-year revenue increase of 8.1% to $5.25 billion.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $65.17 and last traded at $66.77, with a volume of 5881179 shares traded. The stock had previously closed at $70.26.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Wall Street Zen cut shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. JPMorgan Chase & Co. cut their target price on Cognizant Technology Solutions from $101.00 to $89.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 20th. Evercore ISI initiated coverage on Cognizant Technology Solutions in a research report on Thursday, July 17th. They issued an "outperform" rating and a $100.00 price target for the company. Deutsche Bank Aktiengesellschaft assumed coverage on Cognizant Technology Solutions in a report on Thursday, July 17th. They set a "hold" rating and a $80.00 price objective on the stock. Finally, Guggenheim raised shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 target price on the stock in a research report on Friday, July 18th. Five investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Cognizant Technology Solutions currently has a consensus rating of "Hold" and an average price target of $86.79.

Cognizant Technology Solutions Stock Performance

The firm has a 50-day simple moving average of $71.72 and a two-hundred day simple moving average of $75.18. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $33.29 billion, a price-to-earnings ratio of 13.85, a price-to-earnings-growth ratio of 1.39 and a beta of 0.93.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The information technology service provider reported $1.31 EPS for the quarter, beating the consensus estimate of $1.26 by $0.05. The business had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.17 billion. Cognizant Technology Solutions had a return on equity of 16.77% and a net margin of 11.89%.The firm's quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.17 EPS. 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 forecast that Cognizant Technology Solutions Corporation will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Monday, August 18th were issued a $0.31 dividend. The ex-dividend date was Monday, August 18th. This represents a $1.24 dividend on an annualized basis and a yield of 1.8%. Cognizant Technology Solutions's dividend payout ratio is currently 25.20%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CTSH. Brighton Jones LLC bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth $214,000. Vise Technologies Inc. bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $365,000. GTS Securities LLC grew its holdings in Cognizant Technology Solutions by 394.9% in the 4th quarter. GTS Securities LLC now owns 16,387 shares of the information technology service provider's stock valued at $1,260,000 after buying an additional 21,944 shares during the last quarter. GF Fund Management CO. LTD. bought a new position in Cognizant Technology Solutions in the 4th quarter worth approximately $7,226,000. Finally, Formidable Asset Management LLC lifted its holdings in shares of Cognizant Technology Solutions by 31.7% during the fourth quarter. Formidable Asset Management LLC now owns 9,120 shares of the information technology service provider's stock worth $701,000 after buying an additional 2,194 shares during the last quarter. 92.44% of the stock is owned by institutional investors.

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.