Cognizant Technology Solutions Corporation $CTSH Shares Sold by Bank of America Corp DE

Key Points

• Bank of America reduced its Cognizant stake by 8.5% in the first quarter, selling 250,221 shares and retaining 2.71 million shares valued at approximately $166.1 million. Institutional investors collectively own 92.44% of the company.
• Cognizant reported quarterly revenue of $5.48 billion, up 4.5% year over year, but EPS of $1.37 narrowly missed analysts’ $1.38 estimate. The company issued fiscal 2026 EPS guidance of $5.70–$5.82.
• The company declared a quarterly dividend of $0.33 per share, representing a 2.4% yield, and authorized a $2 billion share-repurchase program covering up to 9% of outstanding shares. Analysts maintain a consensus “Hold” rating with an average price target of $63.17.

Bank of America Corp DE cut its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 8.5% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 2,707,088 shares of the information technology service provider's stock after selling 250,221 shares during the quarter. Bank of America Corp DE owned approximately 0.57% of Cognizant Technology Solutions worth $166,080,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of CTSH. Flagship Harbor Advisors LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. raised its stake in Cognizant Technology Solutions by 165.1% during the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after acquiring an additional 213 shares during the last quarter. Prosperity Bancshares Inc acquired a new stake in Cognizant Technology Solutions during the 4th quarter worth approximately $29,000. Towne Trust Company N.A grew its stake in shares of Cognizant Technology Solutions by 85.0% in the 4th quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock valued at $31,000 after purchasing an additional 170 shares during the last quarter. Finally, JPL Wealth Management LLC purchased a new position in Cognizant Technology Solutions in the third quarter worth $25,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Performance

NASDAQ:CTSH opened at $55.74 on Thursday. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11. The firm has a 50-day moving average price of $47.40 and a two-hundred day moving average price of $57.75. Cognizant Technology Solutions Corporation has a twelve month low of $37.08 and a twelve month high of $87.03. The company has a market capitalization of $26.41 billion, a P/E ratio of 11.99, a price-to-earnings-growth ratio of 1.13 and a beta of 0.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (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 business had revenue of $5.48 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the previous year, the firm posted $1.31 EPS. The business's 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. As a group, research analysts expect 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 disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 18th. Cognizant Technology Solutions's payout ratio is currently 28.39%.

Cognizant Technology Solutions declared that its board has authorized a stock repurchase program 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 reacquire up to 9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Daiwa Securities Group decreased their target price on shares of Cognizant Technology Solutions from $65.00 to $42.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 24th. TD Cowen raised their price objective on shares of Cognizant Technology Solutions from $47.00 to $54.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Jefferies Financial Group lowered their target price on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating on the stock in a research report on Monday, May 4th. Dbs Bank reduced their price target on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research report on Thursday, May 7th. Finally, Mizuho reduced their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Ten investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $63.17.

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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