Baird Financial Group Inc. Boosts Stake in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Baird Financial Group Inc. increased its stake in Cognizant Technology Solutions by 21.8%, bringing its total holdings to 46,892 shares valued at approximately $3.6 million after acquiring an additional 8,385 shares in the first quarter.
• Cognizant reported earnings of $1.31 per share for the last quarter, surpassing the consensus estimate, and generated revenues of $5.25 billion, which is an 8.1% increase year-over-year.
• The company declared a quarterly dividend of $0.31, translating to an annualized amount of $1.24, reflecting a dividend yield of 1.7%, with a payout ratio of 25.20%.

Baird Financial Group Inc. raised its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 21.8% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 46,892 shares of the information technology service provider's stock after purchasing an additional 8,385 shares during the period. Baird Financial Group Inc.'s holdings in Cognizant Technology Solutions were worth $3,587,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Evergreen Capital Management LLC boosted its stake in Cognizant Technology Solutions by 4.2% during the 1st quarter. Evergreen Capital Management LLC now owns 6,551 shares of the information technology service provider's stock valued at $501,000 after purchasing an additional 266 shares during the last quarter. Magnetar Financial LLC purchased a new stake in Cognizant Technology Solutions during the 1st quarter valued at $960,000. Canada Pension Plan Investment Board boosted its stake in Cognizant Technology Solutions by 327.4% during the 1st quarter. Canada Pension Plan Investment Board now owns 1,105,521 shares of the information technology service provider's stock valued at $84,572,000 after purchasing an additional 846,835 shares during the last quarter. WPG Advisers LLC purchased a new stake in Cognizant Technology Solutions during the 1st quarter valued at $61,000. Finally, State of Wyoming boosted its stake in Cognizant Technology Solutions by 5.1% during the 1st quarter. State of Wyoming now owns 6,160 shares of the information technology service provider's stock valued at $471,000 after purchasing an additional 299 shares during the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ CTSH traded down $0.63 during midday trading on Monday, reaching $71.19. The stock had a trading volume of 5,198,765 shares, compared to its average volume of 3,499,319. The stock has a 50-day moving average of $73.59 and a 200-day moving average of $76.21. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.41 and a current ratio of 2.41. The company has a market capitalization of $34.77 billion, a price-to-earnings ratio of 14.47, a price-to-earnings-growth ratio of 1.50 and a beta of 0.93. Cognizant Technology Solutions Corporation has a 12-month low of $65.52 and a 12-month high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The information technology service provider reported $1.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.26 by $0.05. The firm had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.17 billion. Cognizant Technology Solutions had a net margin of 11.89% and a return on equity of 16.77%. The company's revenue for the quarter was up 8.1% compared to the same quarter last year. During the same period in the prior year, the company posted $1.17 earnings per share. Cognizant Technology Solutions has set its FY 2025 guidance at 5.080-5.220 EPS. Q3 2025 guidance at EPS. As a group, research analysts anticipate that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th were paid a $0.31 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.7%. Cognizant Technology Solutions's dividend payout ratio is 25.20%.

Analyst Upgrades and Downgrades

CTSH has been the subject of a number of research reports. JPMorgan Chase & Co. decreased their target price on shares of Cognizant Technology Solutions from $101.00 to $89.00 and set an "overweight" rating for the company in a research note on Wednesday, August 20th. Guggenheim upgraded shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 target price for the company in a research note on Friday, July 18th. Evercore ISI initiated coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They set an "outperform" rating and a $100.00 target price for the company. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They set a "hold" rating and a $80.00 target price for the company. Finally, Wall Street Zen lowered shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Five equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $86.07.

Cognizant Technology Solutions Company Profile

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.