Capital Research Global Investors Buys 139,437 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Capital Research Global Investors increased its Cognizant Technology Solutions stake by 2.2% in the fourth quarter, buying 139,437 shares and bringing its total holding to 6.36 million shares valued at about $527.6 million.
• Cognizant reported better-than-expected quarterly earnings, with EPS of $1.40 versus the $1.33 consensus, while revenue came in at $5.41 billion and rose 5.8% year over year.
• The company announced a $2 billion share repurchase program and paid a quarterly dividend of $0.33 per share, equal to a 2.5% annualized yield.

Capital Research Global Investors raised its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 2.2% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 6,356,349 shares of the information technology service provider's stock after purchasing an additional 139,437 shares during the period. Capital Research Global Investors owned 1.32% of Cognizant Technology Solutions worth $527,577,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Flagship Harbor Advisors LLC bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $28,000. Physician Wealth Advisors Inc. grew its holdings in Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after purchasing an additional 213 shares during the period. Lodestone Wealth Management LLC purchased a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Towne Trust Company N.A lifted its position in shares of Cognizant Technology Solutions by 85.0% in the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock valued at $31,000 after acquiring an additional 170 shares in the last quarter. Finally, JPL Wealth Management LLC purchased a new position in shares of Cognizant Technology Solutions in the third quarter valued at about $25,000. Institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Price Performance

NASDAQ:CTSH opened at $53.21 on Monday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $25.21 billion, a P/E ratio of 11.57, a P/E/G ratio of 1.12 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. The business's 50-day moving average is $55.65 and its 200 day moving average is $68.46.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. The company 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 firm's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions's payout ratio is currently 28.70%.

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

Analyst Ratings Changes

CTSH has been the topic of several research analyst reports. UBS Group lowered their price objective on Cognizant Technology Solutions from $60.00 to $55.00 in a research report on Monday, May 11th. Truist Financial initiated coverage on Cognizant Technology Solutions in a research report on Monday, June 1st. They issued a "hold" rating and a $66.00 price objective on the stock. Citigroup lowered their price objective on Cognizant Technology Solutions from $58.00 to $51.00 and set a "neutral" rating on the stock in a research report on Friday, May 15th. Wedbush lowered their price objective on Cognizant Technology Solutions from $61.00 to $56.00 and set a "neutral" rating on the stock in a research report on Thursday, April 30th. Finally, Argus upgraded Cognizant Technology Solutions to a "hold" rating in a research report on Tuesday, February 10th. Ten equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Cognizant Technology Solutions currently has an average rating of "Hold" and an average price target of $72.68.

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.

Want to see what other hedge funds are holding CTSH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.