Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Stock Has Average Price Target of $64.43

Key Points

• Cognizant Technology Solutions has a consensus “Hold” rating among 24 analysts, with 13 holds, 10 buys and one sell. The average 12-month price target is $64.43, above the reported share price of $58.51.
• The company narrowly missed quarterly earnings expectations, reporting $1.37 in EPS versus the $1.38 consensus, while revenue matched estimates at $5.48 billion and increased 4.5% year over year.
• Cognizant pays a quarterly dividend of $0.33, equivalent to an annualized $1.32 and a 2.3% yield. Institutional investors own 92.44% of the company’s shares.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) has earned a consensus rating of "Hold" from the twenty-four ratings firms that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating and ten have assigned a buy rating to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $64.43.

Several research firms have issued reports on CTSH. Wells Fargo & Company raised their price target on shares of Cognizant Technology Solutions from $61.00 to $67.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $70.00 price objective (up from $65.00) on shares of Cognizant Technology Solutions in a research report on Friday, September 18th. Weiss Ratings restated a "hold (c-)" rating on shares of Cognizant Technology Solutions in a report on Friday, August 7th. TD Cowen reaffirmed a "hold" rating and set a $54.00 price target on shares of Cognizant Technology Solutions in a research report on Friday, September 18th. Finally, Berenberg Bank set a $59.00 price target on Cognizant Technology Solutions and gave the stock a "hold" rating in a report on Wednesday, June 17th.

Cognizant Technology Solutions Stock Down 3.9%

Shares of CTSH opened at $58.51 on Friday. The stock's 50-day moving average price is $59.22 and its two-hundred day moving average price is $54.47. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03. The company has a market capitalization of $26.36 billion, a PE ratio of 12.58, a PEG ratio of 1.09 and a beta of 0.86. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.01). The company had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The company's quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, analysts anticipate that Cognizant Technology Solutions will post 5.74 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, August 18th. Cognizant Technology Solutions's payout ratio is currently 28.39%.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several large investors have recently added to or reduced their stakes in CTSH. CX Institutional increased its holdings in Cognizant Technology Solutions by 19.0% in the third quarter. CX Institutional now owns 161,341 shares of the information technology service provider's stock worth $9,245,000 after purchasing an additional 25,805 shares in the last quarter. Security National Bank of SO Dak boosted its holdings in shares of Cognizant Technology Solutions by 1.1% during the 2nd quarter. Security National Bank of SO Dak now owns 25,780 shares of the information technology service provider's stock worth $998,000 after buying an additional 290 shares in the last quarter. Security National Bank of Sioux City Iowa IA boosted its holdings in shares of Cognizant Technology Solutions by 40.8% during the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 35,837 shares of the information technology service provider's stock worth $1,388,000 after buying an additional 10,385 shares in the last quarter. ABS Direct Equity Fund LLC acquired a new stake in shares of Cognizant Technology Solutions during the 2nd quarter worth approximately $360,000. Finally, Sequoia Financial Advisors LLC grew its position in shares of Cognizant Technology Solutions by 69.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 98,919 shares of the information technology service provider's stock worth $3,831,000 after buying an additional 40,379 shares during the period. Institutional investors and hedge funds own 92.44% of the company's stock.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation NASDAQ: CTSH is a global professional services and information technology company that helps businesses modernize their operations and technology infrastructure. Its services include IT consulting, systems integration, application development and modernization, cloud computing, data and analytics, artificial intelligence, cybersecurity, and digital engineering.

The company also provides business process services and industry-specific solutions for sectors such as financial services, healthcare, life sciences, manufacturing, retail, communications, and information technology.

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