AIA Group Ltd Boosts Stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH)

Key Points

• AIA Group Ltd has significantly increased its stake in Cognizant Technology Solutions by 203.5%, owning 9,208 shares valued at $704,000 as reported in their latest SEC filing.
• Cognizant reported earnings of $1.31 per share for the last quarter, surpassing the estimated $1.26 and showing an 8.1% revenue growth year-over-year with a total revenue of $5.25 billion.
• The company declared a quarterly dividend of $0.31 per share, with an annual yield of 1.8%, scheduled for payment on August 26th.

AIA Group Ltd increased its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 203.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,208 shares of the information technology service provider's stock after purchasing an additional 6,174 shares during the period. AIA Group Ltd's holdings in Cognizant Technology Solutions were worth $704,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Park Square Financial Group LLC purchased a new stake in Cognizant Technology Solutions in the 4th quarter worth about $36,000. CoreCap Advisors LLC boosted its holdings in Cognizant Technology Solutions by 21.5% during the 4th quarter. CoreCap Advisors LLC now owns 711 shares of the information technology service provider's stock valued at $55,000 after acquiring an additional 126 shares during the period. Pinney & Scofield Inc. purchased a new position in Cognizant Technology Solutions during the 4th quarter valued at $55,000. Optiver Holding B.V. purchased a new position in Cognizant Technology Solutions during the 4th quarter valued at $66,000. Finally, Zions Bancorporation National Association UT purchased a new position in Cognizant Technology Solutions during the 1st quarter valued at $66,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Stock Performance

CTSH stock traded up $0.63 during mid-day trading on Friday, hitting $70.00. The company had a trading volume of 3,538,845 shares, compared to its average volume of 3,871,263. The firm has a market cap of $34.19 billion, a PE ratio of 14.23, a price-to-earnings-growth ratio of 1.47 and a beta of 0.90. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.41 and a current ratio of 2.41. Cognizant Technology Solutions Corporation has a 12 month low of $65.52 and a 12 month high of $90.82. The stock's fifty day moving average price is $76.09 and its two-hundred day moving average price is $78.05.

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

Cognizant Technology Solutions Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Investors of record on Monday, August 18th will be paid a dividend of $0.31 per share. The ex-dividend date of this dividend is 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 presently 25.20%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CTSH. Barclays dropped their price objective on Cognizant Technology Solutions from $103.00 to $90.00 and set an "overweight" rating for the company in a report on Friday, April 25th. Deutsche Bank Aktiengesellschaft assumed coverage on Cognizant Technology Solutions in a research note on Thursday, July 17th. They issued a "hold" rating and a $80.00 price target for the company. JPMorgan Chase & Co. cut their price objective on Cognizant Technology Solutions from $98.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Robert W. Baird raised their target price on Cognizant Technology Solutions from $78.00 to $82.00 and gave the stock a "neutral" rating in a report on Thursday, May 1st. Finally, Guggenheim raised Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 target price on the stock in a report on Friday, July 18th. Thirteen analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $86.56.

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.