Cognizant Technology Solutions Corporation $CTSH Shares Sold by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management sharply cut its stake in Cognizant Technology Solutions, selling 1.58 million shares in Q1 and reducing its position by 81.6% to 356,153 shares worth about $21.85 million.
• Cognizant reported better-than-expected Q1 earnings of $1.40 per share on revenue of $5.41 billion, with revenue up 5.8% year over year, and it issued FY2026 EPS guidance of 5.630-5.770.
• 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 3.3%.

Assenagon Asset Management S.A. decreased its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 81.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 356,153 shares of the information technology service provider's stock after selling 1,575,587 shares during the quarter. Assenagon Asset Management S.A. owned 0.07% of Cognizant Technology Solutions worth $21,850,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of CTSH. Checchi Capital Advisers LLC raised its position in Cognizant Technology Solutions by 3.4% during the fourth quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider's stock worth $320,000 after acquiring an additional 127 shares during the last quarter. Unison Advisors LLC lifted its stake in Cognizant Technology Solutions by 0.5% in the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider's stock valued at $2,498,000 after buying an additional 138 shares in the last quarter. TD Waterhouse Canada Inc. raised its holdings in shares of Cognizant Technology Solutions by 7.2% in the fourth quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider's stock worth $177,000 after acquiring an additional 143 shares during the last quarter. Security National Bank of SO Dak lifted its position in shares of Cognizant Technology Solutions by 0.6% in the second quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider's stock valued at $1,922,000 after acquiring an additional 150 shares in the last quarter. Finally, Cidel Asset Management Inc. lifted its position in shares of Cognizant Technology Solutions by 3.0% in the fourth quarter. Cidel Asset Management Inc. now owns 5,535 shares of the information technology service provider's stock valued at $459,000 after acquiring an additional 163 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ:CTSH opened at $40.03 on Friday. The business has a 50-day moving average of $51.46 and a two-hundred day moving average of $65.41. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. Cognizant Technology Solutions Corporation has a fifty-two week low of $38.97 and a fifty-two week high of $87.03. The stock has a market capitalization of $18.97 billion, a P/E ratio of 8.70, a P/E/G ratio of 0.82 and a beta of 0.81.

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 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to analysts' expectations of $5.41 billion. During the same quarter in the prior year, the business earned $1.23 earnings per share. The company's revenue 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. On average, equities research analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions declared that its board has approved a share repurchase program 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 purchase up to 9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

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 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 yield of 3.3%. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 28.70%.

Wall Street Analysts Forecast Growth

CTSH has been the subject of several analyst reports. Citigroup boosted their target price on shares of Cognizant Technology Solutions from $51.00 to $55.00 and gave the company a "neutral" rating in a research note on Monday, June 8th. BMO Capital Markets lowered their price target on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. HSBC cut their price objective on shares of Cognizant Technology Solutions from $98.00 to $80.00 in a research report on Thursday, April 30th. Mizuho reduced their price objective on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. Finally, Daiwa Securities Group lowered their target price on shares of Cognizant Technology Solutions from $65.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday. Ten research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $69.70.

About Cognizant Technology Solutions

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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