Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 12-Month Low on Analyst Downgrade

Key Points

• Cognizant Technology Solutions hit a new 52-week low after Berenberg Bank cut its price target from $107 to $81, though the firm still has a buy rating on the stock.
• Several other analysts also lowered their targets recently, and the stock now has an average Hold rating with an average price target of $73.76, according to MarketBeat data.
• The company recently beat quarterly EPS estimates with $1.40 per share and announced a quarterly dividend of $0.33 per share, for an annualized yield of about 2.7%.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report)'s share price reached a new 52-week low on Monday after Berenberg Bank lowered their price target on the stock from $107.00 to $81.00. Berenberg Bank currently has a buy rating on the stock. Cognizant Technology Solutions traded as low as $49.83 and last traded at $49.9150, with a volume of 1492924 shares changing hands. The stock had previously closed at $51.68.

A number of other brokerages have also recently commented on CTSH. BMO Capital Markets dropped their price target on Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Morgan Stanley dropped their price target on Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 30th. Dbs Bank dropped their price target on Cognizant Technology Solutions from $80.00 to $66.00 in a research report on Thursday. Argus raised Cognizant Technology Solutions to a "hold" rating in a research report on Tuesday, February 10th. Finally, Citigroup reissued a "neutral" rating and issued a $58.00 price target (down from $68.00) on shares of Cognizant Technology Solutions in a research report on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, Cognizant Technology Solutions currently has an average rating of "Hold" and an average price target of $73.76.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CTSH. JPL Wealth Management LLC bought a new position in Cognizant Technology Solutions in the 3rd quarter valued at approximately $25,000. Lodestone Wealth Management LLC bought a new position in Cognizant Technology Solutions in the 4th quarter valued at approximately $28,000. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions in the 4th quarter valued at approximately $28,000. Physician Wealth Advisors Inc. lifted its position in Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after acquiring an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in Cognizant Technology Solutions in the 4th quarter valued at approximately $29,000. 92.44% of the stock is owned by institutional investors.

Cognizant Technology Solutions Price Performance

The firm has a market capitalization of $23.59 billion, a P/E ratio of 10.82, a PEG ratio of 1.09 and a beta of 0.81. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The firm has a 50-day moving average of $60.24 and a 200-day moving average of $71.35.

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

Cognizant Technology Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th will be paid a dividend of $0.33 per share. The ex-dividend date is Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.7%. Cognizant Technology Solutions's payout ratio is currently 28.70%.

About Cognizant Technology Solutions

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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