Cognizant Technology Solutions Corporation $CTSH Shares Acquired by Tidal Investments LLC

Key Points

• Tidal Investments increased its Cognizant stake by 20.7% in the second quarter, adding 38,577 shares to reach 224,697 shares valued at approximately $8.7 million. Institutional investors collectively own 92.44% of CTSH.
• Cognizant reported quarterly revenue of $5.48 billion, up 4.5% year over year, but earnings of $1.37 per share narrowly missed estimates. Analysts have a consensus “Hold” rating and an average price target of $63.
• The company pays a quarterly dividend of $0.33 per share, representing a 2.2% yield, and authorized a $2 billion share-repurchase program covering up to 9% of outstanding shares.

Tidal Investments LLC increased its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 20.7% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 224,697 shares of the information technology service provider's stock after buying an additional 38,577 shares during the quarter. Tidal Investments LLC's holdings in Cognizant Technology Solutions were worth $8,703,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in CTSH. National Pension Service lifted its position in Cognizant Technology Solutions by 17.2% during the 2nd quarter. National Pension Service now owns 1,275,592 shares of the information technology service provider's stock worth $49,404,000 after acquiring an additional 187,187 shares during the period. WINTON GROUP Ltd acquired a new position in shares of Cognizant Technology Solutions in the second quarter valued at approximately $3,593,000. Engineers Gate Manager LP purchased a new stake in shares of Cognizant Technology Solutions during the second quarter worth approximately $468,000. Cidel Asset Management Inc. lifted its holdings in shares of Cognizant Technology Solutions by 18.5% during the second quarter. Cidel Asset Management Inc. now owns 8,628 shares of the information technology service provider's stock worth $334,000 after purchasing an additional 1,344 shares during the period. Finally, NewEdge Advisors LLC grew its position in Cognizant Technology Solutions by 96.4% in the 2nd quarter. NewEdge Advisors LLC now owns 37,532 shares of the information technology service provider's stock valued at $1,454,000 after buying an additional 18,425 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Stock Performance

Shares of CTSH opened at $60.00 on Friday. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. Cognizant Technology Solutions Corporation has a 52-week low of $37.08 and a 52-week high of $87.03. The company has a 50-day simple moving average of $54.42 and a 200-day simple moving average of $54.87. The company has a market capitalization of $27.03 billion, a PE ratio of 12.90, a P/E/G ratio of 1.12 and a beta of 0.83.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts' consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The company had revenue of $5.48 billion for the quarter, compared to analysts' expectations of $5.48 billion. During the same period in the prior year, the firm posted $1.31 EPS. The firm's quarterly revenue was up 4.5% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Equities research analysts predict that Cognizant Technology Solutions Corporation will post 5.74 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.2%. Cognizant Technology Solutions's payout ratio is 28.39%.

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

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CTSH. Weiss Ratings restated a "hold (c-)" rating on shares of Cognizant Technology Solutions in a research note on Friday, August 7th. Citigroup reissued a "neutral" rating and set a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a report on Thursday, July 30th. Robert W. Baird set a $68.00 price objective on shares of Cognizant Technology Solutions in a research report on Thursday, July 30th. Nomura lowered their price objective on Cognizant Technology Solutions from $93.00 to $74.00 and set a "buy" rating on the stock in a report on Wednesday, July 1st. Finally, JPMorgan Chase & Co. dropped their target price on Cognizant Technology Solutions from $74.00 to $55.00 and set an "overweight" rating on the stock in a research report on Friday, July 24th. Ten investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $63.00.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a professional services and information technology company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company provides consulting, systems integration, application development and maintenance, and business process services to clients across industries.

Its offerings include cloud enablement, software engineering, data and analytics, artificial intelligence, cybersecurity, automation and digital workplace solutions.

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