CIBC Asset Management Inc Increases Stake in Cognizant Technology Solutions Corporation $CTSH

Key Points

• CIBC Asset Management increased its stake in Cognizant Technology Solutions by 31.5% in the fourth quarter, bringing its holdings to 203,727 shares valued at about $16.9 million.
• Cognizant reported better-than-expected quarterly earnings, with EPS of $1.40 versus estimates of $1.33, while revenue came in at $5.41 billion, up 5.8% year over year.
• The company also authorized a $2 billion share repurchase program and paid a quarterly dividend of $0.33 per share, implying an annualized yield of about 2.5%.

CIBC Asset Management Inc boosted its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 31.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 203,727 shares of the information technology service provider's stock after acquiring an additional 48,843 shares during the period. CIBC Asset Management Inc's holdings in Cognizant Technology Solutions were worth $16,909,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of CTSH. Brighton Jones LLC bought a new position in shares of Cognizant Technology Solutions in the 4th quarter worth $214,000. Geneos Wealth Management Inc. lifted its position 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 valued at $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 in the 1st quarter worth approximately $142,000. Cresset Asset Management LLC raised its stake in shares of Cognizant Technology Solutions by 11.4% during the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider's stock worth $715,000 after acquiring an additional 935 shares in the last quarter. Finally, Jump Financial LLC lifted its position in Cognizant Technology Solutions by 231.4% during 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 acquiring an additional 20,716 shares during the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Trading Down 0.2%

Shares of NASDAQ:CTSH opened at $53.40 on Friday. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions Corporation has a 52-week low of $45.48 and a 52-week high of $87.03. The stock has a market cap of $25.30 billion, a price-to-earnings ratio of 11.61, a PEG ratio of 1.13 and a beta of 0.81. The business has a 50-day moving average price of $55.78 and a 200-day moving average price of $68.59.

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

Cognizant Technology Solutions announced that its board has approved a stock repurchase plan on Monday, May 18th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Argus raised Cognizant Technology Solutions to a "hold" rating in a research report on Tuesday, February 10th. Evercore reduced their target price on Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. Robert W. Baird set a $72.00 price target on Cognizant Technology Solutions and gave the stock a "neutral" rating in a research note on Friday, April 10th. Jefferies Financial Group decreased their price objective on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating for the company in a research report on Monday, May 4th. Finally, Guggenheim dropped their target price on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Cognizant Technology Solutions has an average rating of "Hold" and a consensus price target of $72.68.

Cognizant Technology Solutions Company 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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