Cognizant Technology Solutions Corporation $CTSH Shares Sold by Healthcare of Ontario Pension Plan Trust Fund

Key Points

• Healthcare of Ontario Pension Plan Trust Fund cut its Cognizant stake by 80.8%, selling 700,377 shares and retaining 166,508 shares valued at approximately $10.2 million.
• Other institutional investors were more constructive, with Pzena Investment Management increasing its position by 14.9% and Arrowstreet Capital raising its stake by 34.3%; institutions collectively own 92.44% of CTSH.
• Cognizant reported quarterly adjusted earnings of $1.40 per share, beating estimates, and revenue rose 5.8% year over year. The company also authorized a $2 billion share-repurchase plan, while analysts maintain a consensus “Hold” rating with a $61.35 average price target.

Healthcare of Ontario Pension Plan Trust Fund lowered its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 80.8% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 166,508 shares of the information technology service provider's stock after selling 700,377 shares during the period. Healthcare of Ontario Pension Plan Trust Fund's holdings in Cognizant Technology Solutions were worth $10,215,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Evolve Private Wealth LLC purchased a new position in Cognizant Technology Solutions during the fourth quarter worth approximately $2,642,000. OFI Invest Asset Management purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at approximately $8,421,000. Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Cognizant Technology Solutions during the 1st quarter worth approximately $29,510,000. Pzena Investment Management LLC lifted its position in shares of Cognizant Technology Solutions by 14.9% during the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock valued at $1,243,096,000 after buying an additional 2,633,683 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in Cognizant Technology Solutions by 34.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider's stock valued at $238,565,000 after acquiring an additional 734,337 shares during the period. Institutional investors and hedge funds own 92.44% of the company's stock.

Trending Headlines about Cognizant Technology Solutions

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Expanded Anthropic partnership boosts AI growth expectations. Cognizant became one of Anthropic’s Global Premier Partners and will embed Claude across its industry platforms, engineering tools and client projects. The companies are targeting broader production use of AI in sectors including manufacturing, life sciences and insurance, supporting expectations for new consulting and implementation revenue. Cognizant and Anthropic expand partnership article
• Positive Sentiment: New EMEA AI unit aims to convert pilots into recurring enterprise work. The dedicated organization will combine advisory, engineering and delivery capabilities to help European, Middle Eastern and African clients build and operate agentic AI systems. Its platform-independent approach could broaden Cognizant’s addressable market and reinforce its AI Builder strategy. Cognizant launches EMEA AI unit article
• Positive Sentiment: Five-year Andover Companies contract adds evidence of commercial traction. The insurance group selected Cognizant to modernize core and portal systems, unify data and prepare for responsible AI use in underwriting and claims. The long-term engagement provides potential revenue visibility and a reference customer for Cognizant’s insurance and AI capabilities. Andover Companies selects Cognizant article
• Neutral Sentiment: Upcoming quarterly results are the next major catalyst. Analysts expect Cognizant’s results to benefit from bookings, AI demand and acquisition contributions, but investors will look for confirmation that those factors are translating into revenue growth and updated guidance. Cognizant Q2 earnings preview
• Negative Sentiment: Macro and discretionary-spending risks remain. Weak client demand in discretionary areas and broader economic uncertainty could restrain traditional IT-services spending, potentially offsetting some of the expected AI-driven growth.

Cognizant Technology Solutions Price Performance

NASDAQ:CTSH opened at $50.31 on Wednesday. Cognizant Technology Solutions Corporation has a one year low of $37.08 and a one year high of $87.03. The stock has a market cap of $23.84 billion, a PE ratio of 10.94, a P/E/G ratio of 1.03 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The stock has a 50 day moving average price of $47.04 and a 200 day moving average price of $59.01.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data 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 for 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%.The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.23 earnings per share. Equities research analysts expect that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions announced that its board has authorized a stock repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on CTSH shares. Nomura reduced their price objective on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Wedbush upgraded shares of Cognizant Technology Solutions from a "neutral" rating to an "outperform" rating and lifted their target price for the company from $56.00 to $70.00 in a research report on Monday, June 8th. Guggenheim reissued a "buy" rating and set a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research note on Monday. Royal Bank Of Canada set a $55.00 price target on shares of Cognizant Technology Solutions in a research note on Friday. Finally, Robert W. Baird reduced their target price on Cognizant Technology Solutions from $72.00 to $55.00 and set a "neutral" rating for the company in a report on Friday, July 10th. Ten investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $61.35.

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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