56,959 Shares in Cognizant Technology Solutions Corporation $CTSH Acquired by Moody Aldrich Partners LLC

Key Points

• Moody Aldrich Partners acquired 56,959 Cognizant shares in the third quarter, valued at approximately $3.27 million. Institutional investors collectively own 92.44% of the company.
• Cognizant is expanding its AI strategy, including a partnership with Travelport to modernize travel commerce, but turning these initiatives into significant revenue will depend on execution and client adoption.
• Analysts maintain a broadly cautious outlook ahead of the October 29 earnings report: the stock has a consensus “Hold” rating and an average price target of $68.04, while investors will focus on revenue, margins and guidance.

Moody Aldrich Partners LLC acquired a new position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 56,959 shares of the information technology service provider's stock, valued at approximately $3,272,000.

A number of other large investors also recently modified their holdings of CTSH. Security National Bank of SO Dak boosted its holdings in 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 acquiring an additional 290 shares during the last quarter. Signature Equity Partners LLC raised its holdings in shares of Cognizant Technology Solutions by 102.4% in the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider's stock valued at $37,000 after purchasing an additional 303 shares during the last quarter. Pine Valley Investments Ltd Liability Co raised its holdings in shares of Cognizant Technology Solutions by 3.6% in the first quarter. Pine Valley Investments Ltd Liability Co now owns 9,338 shares of the information technology service provider's stock valued at $573,000 after purchasing an additional 322 shares during the last quarter. Marquette Asset Management LLC lifted its position in shares of Cognizant Technology Solutions by 183.9% during the third quarter. Marquette Asset Management LLC now owns 545 shares of the information technology service provider's stock valued at $31,000 after purchasing an additional 353 shares in the last quarter. Finally, Patton Fund Management Inc. lifted its position in shares of Cognizant Technology Solutions by 12.8% during the first quarter. Patton Fund Management Inc. now owns 3,270 shares of the information technology service provider's stock valued at $201,000 after purchasing an additional 371 shares in the last quarter. Institutional investors own 92.44% of the company's stock.

Key Cognizant Technology Solutions News

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: AI partnership expands travel-industry growth prospects: Cognizant and Travelport are deepening their strategic partnership to modernize travel retail using artificial intelligence. The companies aim to build more intelligent, personalized travel-commerce capabilities, potentially creating additional demand for Cognizant’s consulting and technology services. Cognizant, Travelport Join Hands To Modernize Travel Retail With AI
• Positive Sentiment: Analyst price-target increases provide support: Wells Fargo raised its price target for CTSH, while Morgan Stanley increased its target from $51 to $70. Although Morgan Stanley retained an Equal Weight rating, the higher target reflects improved valuation or business expectations. Cognizant Stock Gets Price Target Increase from Wells Fargo Morgan Stanley Raises Cognizant Price Target
• Neutral Sentiment: Investors are focused on the October 29 earnings release: Cognizant expects third-quarter revenue of $5.6 billion to $5.68 billion. Wall Street previews are examining revenue, profitability and other operating metrics to determine whether growth is accelerating. The company’s previous quarter included 4.5% year-over-year revenue growth but a slight EPS miss, increasing the importance of guidance and margins in the new report. CTSH Set to Report Q3 Earnings
• Neutral Sentiment: AI strategy offers upside but execution remains unproven: Coverage of Cognizant’s AI-led EBRD framework highlights the potential for artificial intelligence to drive growth, while noting that converting strategic initiatives into material revenue will depend on client adoption and execution. Can Cognizant Turn AI-Led EBRD Framework Into Growth?
• Negative Sentiment: Valuation and fundamentals remain concerns: Morgan Stanley’s continued Hold stance signals that, despite the higher target, analysts see uncertainties around Cognizant’s fundamental outlook and limited near-term upside. The upcoming earnings report must validate the stock’s recent strength.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ:CTSH opened at $66.36 on Thursday. The company has a market capitalization of $29.89 billion, a P/E ratio of 14.27, a price-to-earnings-growth ratio of 1.32 and a beta of 0.86. The company's 50-day moving average is $62.09 and its 200 day moving average is $59.50. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.18 and a current ratio of 2.18. Cognizant Technology Solutions Corporation has a fifty-two week low of $37.08 and a fifty-two week high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.01). The company had revenue of $5.48 billion for the quarter, compared to analysts' expectations of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The business's quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter last year, the business posted $1.31 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions Corporation will post 5.74 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages have issued reports on CTSH. Royal Bank Of Canada set a $55.00 price objective on shares of Cognizant Technology Solutions in a research report on Friday, July 24th. TD Cowen reissued a "hold" rating and set a $60.00 target price (up from $54.00) on shares of Cognizant Technology Solutions in a research report on Tuesday, October 13th. HSBC cut their target price on Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating on the stock in a research note on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $70.00 target price (up from $65.00) on shares of Cognizant Technology Solutions in a report on Friday, September 18th. Finally, Guggenheim reaffirmed a "buy" rating and set a $80.00 price target (up from $65.00) on shares of Cognizant Technology Solutions in a research report on Tuesday. Ten investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $68.04.

Cognizant Technology Solutions Profile

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant's services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.

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