Cognizant Technology Solutions Corporation $CTSH is Yacktman Asset Management LP's 10th Largest Position

Key Points

• Yacktman Asset Management trimmed its Cognizant stake by 9.6% in the fourth quarter, but CTSH remains its 10th-largest holding at about 3.5% of the portfolio, worth roughly $247.6 million.
• Cognizant reported strong quarterly results, with EPS of $1.40 beating estimates and revenue of $5.41 billion matching expectations; revenue rose 5.8% year over year.
• The company declared a quarterly dividend of $0.33 per share and faces a cautious Wall Street outlook, with analysts maintaining a consensus “Hold” rating and an average price target of $75.

Yacktman Asset Management LP lessened its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 9.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,983,431 shares of the information technology service provider's stock after selling 316,003 shares during the period. Cognizant Technology Solutions comprises approximately 3.5% of Yacktman Asset Management LP's investment portfolio, making the stock its 10th biggest position. Yacktman Asset Management LP owned 0.62% of Cognizant Technology Solutions worth $247,625,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the business. MGO One Seven LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $233,000. Crestwood Advisors Group LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $492,000. Sequoia Financial Advisors LLC boosted its position in shares of Cognizant Technology Solutions by 254.3% during the fourth quarter. Sequoia Financial Advisors LLC now owns 77,860 shares of the information technology service provider's stock valued at $6,462,000 after buying an additional 55,887 shares during the period. Gateway Investment Advisers LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $267,000. Finally, Plan Group Financial LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $241,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ:CTSH opened at $51.68 on Friday. The firm has a 50 day moving average of $60.24 and a 200 day moving average of $71.35. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $24.72 billion, a price-to-earnings ratio of 11.23, a price-to-earnings-growth ratio of 1.09 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 52 week low of $50.19 and a 52 week high of $87.03.

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 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. The company had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.Cognizant Technology Solutions's revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior 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, sell-side analysts predict 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 announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th will be issued a dividend of $0.33 per share. The ex-dividend date is Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.6%. Cognizant Technology Solutions's dividend payout ratio is currently 28.70%.

Wall Street Analysts Forecast Growth

CTSH has been the subject of a number of research reports. Evercore lowered their price target on Cognizant Technology Solutions from $100.00 to $70.00 in a report on Thursday, April 30th. Nomura boosted their price target on Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Royal Bank Of Canada boosted their price target on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. HSBC lowered their price target on Cognizant Technology Solutions from $98.00 to $80.00 in a report on Thursday, April 30th. Finally, Morgan Stanley lowered their price target on Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating for the company in a report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $75.00.

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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