Ardsley Advisory Partners LP Takes Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Ardsley Advisory Partners LP disclosed a new fourth-quarter stake in Cognizant Technology Solutions, buying 22,000 shares valued at about $1.83 million.
• Institutional interest remains high, with hedge funds and other investors owning 92.44% of Cognizant’s shares, while several other funds also added or initiated positions recently.
• Analyst sentiment is mixed: Cognizant has a consensus Hold rating and an average price target of $72.50, even though the stock recently traded at $48.82 and the company beat quarterly EPS estimates.

Ardsley Advisory Partners LP acquired a new stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 22,000 shares of the information technology service provider's stock, valued at approximately $1,826,000.

Several other large investors have also recently bought and sold shares of CTSH. Brighton Jones LLC purchased a new position in Cognizant Technology Solutions in the fourth quarter valued at $214,000. Geneos Wealth Management Inc. grew its holdings in shares of Cognizant Technology Solutions by 118.8% during 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 last quarter. Acadian Asset Management LLC purchased a new position in shares of Cognizant Technology Solutions during the first quarter worth about $142,000. Cresset Asset Management LLC grew its holdings in shares of Cognizant Technology Solutions by 11.4% during the second quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider's stock worth $715,000 after buying an additional 935 shares during the last quarter. Finally, Jump Financial LLC lifted its position in Cognizant Technology Solutions by 231.4% in the second quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider's stock valued at $2,315,000 after purchasing an additional 20,716 shares during the period. Hedge funds and other institutional investors own 92.44% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Nomura raised their price objective on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Truist Financial initiated coverage on Cognizant Technology Solutions in a research report on Monday, June 1st. They set a "hold" rating and a $66.00 price objective for the company. Citigroup lifted their price objective on Cognizant Technology Solutions from $51.00 to $55.00 and gave the stock a "neutral" rating in a research report on Monday, June 8th. JPMorgan Chase & Co. cut their price target on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Finally, Jefferies Financial Group dropped their price objective on Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating for the company in a report on Monday, May 4th. Ten analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cognizant Technology Solutions presently has a consensus rating of "Hold" and an average price target of $72.50.

Cognizant Technology Solutions Stock Performance

NASDAQ:CTSH opened at $48.82 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. Cognizant Technology Solutions Corporation has a 1-year low of $45.48 and a 1-year high of $87.03. The firm has a 50-day moving average of $54.05 and a two-hundred day moving average of $67.15. The stock has a market cap of $23.13 billion, a P/E ratio of 10.61, a PEG ratio of 1.07 and a beta of 0.81.

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

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.7%. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions announced that its board has authorized a stock repurchase program on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to buy up to 9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

About Cognizant Technology Solutions

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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