Ashoka WhiteOak Capital Pte Ltd Purchases New Holdings in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Ashoka WhiteOak Capital Pte Ltd opened a new position in Cognizant Technology Solutions during the first quarter, buying 460,170 shares valued at about $28.1 million. The stake represented roughly 10.7% of its portfolio and made CTSH its second-largest holding.
• Institutional ownership remains heavy, with about 92.44% of Cognizant shares held by institutions and hedge funds. Several other investors also recently initiated or increased positions in the company.
• Analysts are mixed on CTSH: the stock has a consensus rating of “Hold” with an average target price of $70.35, even as some firms cut their price targets. Cognizant also recently beat quarterly EPS estimates and authorized a $2 billion share buyback while paying a quarterly dividend.

Ashoka WhiteOak Capital Pte Ltd acquired a new stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 460,170 shares of the information technology service provider's stock, valued at approximately $28,143,000. Cognizant Technology Solutions makes up about 10.7% of Ashoka WhiteOak Capital Pte Ltd's investment portfolio, making the stock its 2nd biggest position. Ashoka WhiteOak Capital Pte Ltd owned 0.10% of Cognizant Technology Solutions at the end of the most recent quarter.

Other institutional investors also recently made changes to their positions in the company. JPL Wealth Management LLC bought a new position in Cognizant Technology Solutions during the 3rd quarter valued at $25,000. Lodestone Wealth Management LLC acquired a new position in Cognizant Technology Solutions in the fourth quarter worth about $28,000. Flagship Harbor Advisors LLC acquired a new position in Cognizant Technology Solutions in the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. increased its holdings in Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after buying an additional 213 shares during the last quarter. Finally, Prosperity Bancshares Inc bought a new stake in Cognizant Technology Solutions in the fourth quarter valued at about $29,000. 92.44% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have commented on CTSH shares. The Goldman Sachs Group set a $75.00 target price on Cognizant Technology Solutions in a report on Wednesday, April 29th. BMO Capital Markets lowered their price target on Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. JPMorgan Chase & Co. reduced their price objective on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 28th. UBS Group reduced their price objective on Cognizant Technology Solutions from $60.00 to $55.00 in a research note on Monday, May 11th. Finally, TD Cowen reiterated a "hold" rating and set a $62.00 target price (down from $71.00) on shares of Cognizant Technology Solutions in a research note on Thursday, April 30th. Ten analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat, Cognizant Technology Solutions currently has an average rating of "Hold" and an average target price of $70.35.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ CTSH opened at $41.42 on Thursday. Cognizant Technology Solutions Corporation has a 1-year low of $40.77 and a 1-year high of $87.03. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The business's fifty day moving average price is $52.28 and its two-hundred day moving average price is $65.88. The firm has a market capitalization of $19.63 billion, a PE ratio of 9.00, a P/E/G ratio of 0.86 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating 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 company had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter in the previous year, the company posted $1.23 earnings per share. The company's revenue for the quarter 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 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were given a $0.33 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.32 annualized dividend and a yield of 3.2%. Cognizant Technology Solutions's dividend payout ratio is 28.70%.

Cognizant Technology Solutions announced that its board has authorized a share buyback plan 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 reacquire up to 9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

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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