Cognizant Technology Solutions Corporation $CTSH Stock Holdings Lessened by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon reduced its Cognizant stake by 7.4% in the fourth quarter, selling 671,173 shares and leaving it with 8.4 million shares valued at about $698 million.
• Cognizant continues to attract institutional investor support overall, with hedge funds and other institutions owning 92.44% of the stock, even as some positions were trimmed or added to during the period.
• The company is facing mixed market sentiment: it reported solid recent quarterly results and unveiled a $2 billion share repurchase program, but analysts have generally a Hold consensus and the stock has been pressured by softer near-term growth concerns.

Bank of New York Mellon Corp trimmed its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 7.4% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 8,409,415 shares of the information technology service provider's stock after selling 671,173 shares during the quarter. Bank of New York Mellon Corp owned 1.74% of Cognizant Technology Solutions worth $697,981,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also made changes to their positions in the company. Vanguard Group Inc. raised its position in Cognizant Technology Solutions by 0.8% during the third quarter. Vanguard Group Inc. now owns 60,348,442 shares of the information technology service provider's stock valued at $4,047,570,000 after acquiring an additional 493,912 shares in the last quarter. Pzena Investment Management LLC raised its position in Cognizant Technology Solutions by 1.5% during the third quarter. Pzena Investment Management LLC now owns 17,710,868 shares of the information technology service provider's stock valued at $1,187,868,000 after acquiring an additional 260,177 shares in the last quarter. Invesco Ltd. raised its position in Cognizant Technology Solutions by 8.6% during the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider's stock valued at $840,669,000 after acquiring an additional 987,395 shares in the last quarter. First Trust Advisors LP raised its position in Cognizant Technology Solutions by 7.6% during the third quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider's stock valued at $609,398,000 after acquiring an additional 639,801 shares in the last quarter. Finally, Norges Bank bought a new position in Cognizant Technology Solutions during the fourth quarter valued at approximately $690,959,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Cognizant announced expanded AI partnerships with Snowflake and CrowdStrike, which could support future revenue growth by deepening its enterprise AI, analytics, and cybersecurity offerings. Cognizant Accelerates Enterprise AI Adoption with Snowflake's Cortex-Powered Intelligent Agents
• Positive Sentiment: Shareholders re-elected the board and backed the company’s governance framework at the annual meeting, signaling continued investor support for management and strategy. Cognizant Shareholders Reelect Board and Back Governance Framework
• Positive Sentiment: Analyst sentiment remains generally constructive, with recent buy/overweight calls and several price targets above the current share price, which may help limit downside. Here's Why Cognizant (CTSH) is a Strong Momentum Stock
• Neutral Sentiment: Cognizant said CFO Jatin Dalal will present at the 2026 Nasdaq Investor Conference next week; this is mostly a visibility event rather than a direct business catalyst. Cognizant to Present at the 2026 Nasdaq Investor Conference in Association with Jefferies
• Neutral Sentiment: Insider selling continued, with CAO Alina Kerdman selling a small block of shares under a pre-arranged 10b5-1 plan; the sale is routine but may still add to cautious sentiment. SEC insider filing for Alina Kerdman sale
• Negative Sentiment: Recent trading has been pressured by investor focus on softer near-term growth signals and a cautious read-through from the latest quarterly guidance, which appears to be weighing on the shares more than the positive headlines. Cognizant slides as investors continue to focus on soft near-term growth signals

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on CTSH. Jefferies Financial Group cut their price objective 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. Argus upgraded Cognizant Technology Solutions to a "hold" rating in a research note on Tuesday, February 10th. Mizuho decreased their price target on Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. UBS Group decreased their price target on Cognizant Technology Solutions from $60.00 to $55.00 in a research note on Monday, May 11th. Finally, Royal Bank Of Canada increased their price target on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. Ten equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Cognizant Technology Solutions currently has a consensus rating of "Hold" and an average target price of $72.68.

Cognizant Technology Solutions Trading Down 3.0%

Shares of CTSH stock opened at $53.51 on Thursday. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. 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's 50 day moving average is $55.92 and its two-hundred day moving average is $68.72. The company has a market cap of $25.36 billion, a PE ratio of 11.63, a price-to-earnings-growth ratio of 1.16 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly 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 company had revenue of $5.41 billion for the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter last year, the company posted $1.23 earnings per share. The company's revenue for the quarter 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. Equities analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders 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 annualized dividend and a dividend yield of 2.5%. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has initiated a stock repurchase program on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to buy up to 9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

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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