Cognizant Technology Solutions Corporation $CTSH Shares Bought by Franklin Resources Inc.

Key Points

• Franklin Resources increased its stake in Cognizant Technology Solutions by 4.4% in the fourth quarter, adding 143,553 shares to bring its total to 3.44 million shares worth about $285.5 million.
• Cognizant has seen mixed analyst sentiment: recent moves included price-target cuts from Evercore and Susquehanna, while the overall consensus rating remains Hold with an average price target of $73.50.
• The company reported better-than-expected quarterly earnings of $1.40 per share and authorized a $2 billion stock buyback, while also paying a quarterly dividend of $0.33 per share.

Franklin Resources Inc. grew its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 4.4% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 3,440,056 shares of the information technology service provider's stock after purchasing an additional 143,553 shares during the period. Franklin Resources Inc. owned approximately 0.71% of Cognizant Technology Solutions worth $285,525,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of CTSH. Brighton Jones LLC acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $214,000. Geneos Wealth Management Inc. increased its holdings 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 purchasing an additional 309 shares during the period. Acadian Asset Management LLC acquired a new position in shares of Cognizant Technology Solutions during the first quarter valued at $142,000. Cresset Asset Management LLC raised its stake in shares of Cognizant Technology Solutions by 11.4% in the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider's stock worth $715,000 after buying an additional 935 shares in the last quarter. Finally, Jump Financial LLC lifted its holdings in shares of Cognizant Technology Solutions by 231.4% in 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 buying an additional 20,716 shares during the period. 92.44% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Evercore cut their price objective on Cognizant Technology Solutions from $100.00 to $70.00 in a report on Thursday, April 30th. Argus upgraded Cognizant Technology Solutions to a "hold" rating in a report on Tuesday, February 10th. Weiss Ratings lowered Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 13th. Citigroup upped their price objective on Cognizant Technology Solutions from $51.00 to $55.00 and gave the company a "neutral" rating in a report on Monday. Finally, Susquehanna cut their price objective on Cognizant Technology Solutions from $98.00 to $88.00 and set a "positive" rating for the company in a report on Friday, May 1st. Eleven analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, Cognizant Technology Solutions currently has a consensus rating of "Hold" and an average price target of $73.50.

Cognizant Technology Solutions Trading Down 0.1%

Shares of NASDAQ CTSH opened at $52.94 on Wednesday. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. The company has a market cap of $25.09 billion, a price-to-earnings ratio of 11.51, a P/E/G ratio of 1.12 and a beta of 0.81. 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 business has a fifty day simple moving average of $55.36 and a 200-day simple moving average of $68.19.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating the consensus estimate 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 business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the business posted $1.23 earnings per share. Cognizant Technology Solutions's revenue was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Sell-side analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

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

Cognizant Technology Solutions Dividend Announcement

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

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.

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