Cognizant Technology Solutions Corporation $CTSH Stock Position Lifted by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital increased its stake in Cognizant Technology Solutions by 34.3% in the fourth quarter, holding about 2.87 million shares worth roughly $238.6 million.
• Several analysts cut their price targets on CTSH, and the stock now carries a consensus rating of Hold with an average price target of $73.50.
• Cognizant posted better-than-expected quarterly earnings of $1.40 per share and also announced a $2 billion share repurchase plan along with a quarterly dividend of $0.33 per share.

Arrowstreet Capital Limited Partnership raised its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 34.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,874,274 shares of the information technology service provider's stock after acquiring an additional 734,337 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.60% of Cognizant Technology Solutions worth $238,565,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. JPL Wealth Management LLC acquired a new stake in Cognizant Technology Solutions in the third quarter valued at approximately $25,000. Lodestone Wealth Management LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth $28,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth $28,000. Physician Wealth Advisors Inc. lifted its stake in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock worth $28,000 after buying an additional 213 shares during the last quarter. Finally, Towne Trust Company N.A lifted its stake in shares of Cognizant Technology Solutions by 85.0% in the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock worth $31,000 after buying an additional 170 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts recently commented on CTSH shares. Evercore cut their target price on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research note on Thursday, April 30th. BMO Capital Markets cut their target price on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a research note on Thursday, April 30th. Wells Fargo & Company lowered their price target on shares of Cognizant Technology Solutions from $98.00 to $83.00 and set an "overweight" rating on the stock in a report on Thursday, April 30th. Dbs Bank lowered their price target on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. Finally, Guggenheim lowered their price target on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Eleven analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $73.50.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ:CTSH opened at $52.17 on Monday. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. The company's 50-day moving average price is $54.79 and its two-hundred day moving average price is $67.71. 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 firm has a market cap of $24.72 billion, a P/E ratio of 11.34, a P/E/G ratio of 1.10 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same quarter in the prior year, the firm earned $1.23 EPS. 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. As a group, research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

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

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock repurchase plan 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 buy up to 9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are 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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