Cognizant Technology Solutions (NASDAQ:CTSH) Stock Rating Upgraded by Wells Fargo & Company

Key Points

• Cognizant Technology Solutions received a "strong-buy" rating upgrade from Wells Fargo & Company, a significant boost in investor sentiment towards the stock.
• Despite the upgrade, other analysts have varied opinions, with JPMorgan lowering its price target while Guggenheim maintains a buy rating.
• The company reported a quarterly EPS of $1.31, exceeding estimates, and showed an 8.1% year-over-year revenue growth, indicating strong financial performance.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) was upgraded by analysts at Wells Fargo & Company to a "strong-buy" rating in a research note issued on Tuesday, Marketbeat reports.

Several other equities analysts also recently commented on CTSH. JPMorgan Chase & Co. lowered their price objective 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. Guggenheim restated a "buy" rating and issued a $85.00 price objective (down from $90.00) on shares of Cognizant Technology Solutions in a research report on Tuesday. Wall Street Zen downgraded Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Weiss Ratings reiterated a "hold (c+)" rating on shares of Cognizant Technology Solutions in a research report on Wednesday, October 8th. Finally, Evercore ISI started coverage on Cognizant Technology Solutions in a research report on Thursday, July 17th. They issued an "outperform" rating and a $100.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, Cognizant Technology Solutions currently has an average rating of "Hold" and an average target price of $86.13.

Cognizant Technology Solutions Stock Performance

NASDAQ:CTSH opened at $68.36 on Tuesday. The stock has a 50-day simple moving average of $69.14 and a two-hundred day simple moving average of $73.62. Cognizant Technology Solutions has a 52-week low of $65.15 and a 52-week high of $90.82. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a market capitalization of $33.39 billion, a PE ratio of 13.89, a P/E/G ratio of 1.43 and a beta of 0.95.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings data 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. Cognizant Technology Solutions had a return on equity of 16.77% and a net margin of 11.89%.The business had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.17 billion. During the same period in the previous year, the business earned $1.17 earnings per share. The business's revenue was up 8.1% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2025 guidance at 5.080-5.220 EPS. Q3 2025 guidance at EPS. Analysts forecast that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hilltop National Bank purchased a new stake in shares of Cognizant Technology Solutions in the second quarter worth approximately $27,000. NewSquare Capital LLC raised its holdings in shares of Cognizant Technology Solutions by 71.8% in the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider's stock worth $29,000 after buying an additional 153 shares during the period. Geneos Wealth Management Inc. raised its holdings in shares of Cognizant Technology Solutions by 118.8% in the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider's stock worth $44,000 after buying an additional 309 shares during the period. WPG Advisers LLC purchased a new stake in shares of Cognizant Technology Solutions in the first quarter worth approximately $61,000. Finally, Cary Street Partners Investment Advisory LLC purchased a new stake in shares of Cognizant Technology Solutions in the second quarter worth approximately $64,000. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

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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