Arbejdsmarkedets Tillaegspension Trims Stock Holdings in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Arbejdsmarkedets Tillaegspension cut its stake in Cognizant Technology Solutions by 54.3% in the first quarter, selling 156,070 shares and leaving it with 131,255 shares worth about $8.05 million.
• Cognizant shares were up 3.7% in Tuesday trading, with the stock opening at $44.16; the company now has a market cap of about $20.93 billion and trades at a relatively low P/E of 9.60.
• The company recently beat earnings expectations with $1.40 EPS, authorized a $2 billion share buyback, and paid a $0.33 quarterly dividend yielding about 3.0%.

Arbejdsmarkedets Tillaegspension cut its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 54.3% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 131,255 shares of the information technology service provider's stock after selling 156,070 shares during the quarter. Arbejdsmarkedets Tillaegspension's holdings in Cognizant Technology Solutions were worth $8,052,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Checchi Capital Advisers LLC grew its holdings in Cognizant Technology Solutions by 3.4% during the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider's stock valued at $320,000 after buying an additional 127 shares in the last quarter. Unison Advisors LLC lifted its holdings in shares of Cognizant Technology Solutions by 0.5% in the fourth quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider's stock worth $2,498,000 after buying an additional 138 shares in the last quarter. TD Waterhouse Canada Inc. boosted its position in shares of Cognizant Technology Solutions by 7.2% during the fourth quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider's stock worth $177,000 after acquiring an additional 143 shares during the last quarter. Security National Bank of SO Dak boosted its position in shares of Cognizant Technology Solutions by 0.6% during the second quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider's stock worth $1,922,000 after acquiring an additional 150 shares during the last quarter. Finally, Cidel Asset Management Inc. grew its stake in Cognizant Technology Solutions by 3.0% during the fourth quarter. Cidel Asset Management Inc. now owns 5,535 shares of the information technology service provider's stock valued at $459,000 after acquiring an additional 163 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Trading Up 3.7%

CTSH opened at $44.16 on Tuesday. The stock has a 50-day moving average of $48.09 and a 200 day moving average of $62.04. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions Corporation has a 12 month low of $37.08 and a 12 month high of $87.03. The firm has a market cap of $20.93 billion, a P/E ratio of 9.60, a P/E/G ratio of 0.90 and a beta of 0.87.

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

Cognizant Technology Solutions declared that its board has approved a stock repurchase program on Monday, May 18th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions's dividend payout ratio is presently 28.70%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on CTSH shares. Nomura reduced their price target on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a "buy" rating on the stock in a report on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on shares of Cognizant Technology Solutions in a report on Friday. Robert W. Baird reduced their target price on Cognizant Technology Solutions from $72.00 to $55.00 and set a "neutral" rating on the stock in a report on Friday. UBS Group decreased their target price on Cognizant Technology Solutions from $60.00 to $55.00 in a research report on Monday, May 11th. Finally, Berenberg Bank set a $59.00 price target on Cognizant Technology Solutions and gave the company a "hold" rating in a research note on Wednesday, June 17th. Eleven research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company. According to MarketBeat.com, Cognizant Technology Solutions presently has an average rating of "Hold" and a consensus target price of $64.26.

Cognizant Technology Solutions Profile

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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