Cognizant Technology Solutions Corporation $CTSH Stock Position Trimmed by Pzena Investment Management LLC

Key Points

• Pzena Investment Management trimmed its Cognizant stake slightly in the fourth quarter, selling 82,189 shares and leaving it with 17.63 million shares valued at about $1.46 billion. Even after the sale, CTSH remained Pzena’s second-largest holding.
• Cognizant reported strong quarterly results, with EPS of $1.40 beating estimates and revenue of $5.41 billion matching expectations. Revenue rose 5.8% year over year, and the company issued FY 2026 EPS guidance of 5.63 to 5.77.
• The company also announced a quarterly dividend of $0.33 per share and a new $2 billion share buyback authorization, equal to up to 9% of outstanding shares. Analysts currently have a mixed view, with the stock holding an average rating of Hold and a consensus target price of $73.

Pzena Investment Management LLC reduced its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 0.5% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,628,679 shares of the information technology service provider's stock after selling 82,189 shares during the quarter. Cognizant Technology Solutions comprises approximately 4.4% of Pzena Investment Management LLC's portfolio, making the stock its 2nd biggest holding. Pzena Investment Management LLC owned approximately 3.65% of Cognizant Technology Solutions worth $1,463,180,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of CTSH. CIBC Bancorp USA Inc. purchased a new stake in Cognizant Technology Solutions in the third quarter valued at approximately $201,834,000. Voloridge Investment Management LLC increased its position in shares of Cognizant Technology Solutions by 801.4% during the 3rd quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider's stock valued at $141,134,000 after purchasing an additional 1,870,834 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its position in shares of Cognizant Technology Solutions by 144.3% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 2,631,890 shares of the information technology service provider's stock valued at $176,521,000 after purchasing an additional 1,554,648 shares during the last quarter. PFA Pension Forsikringsaktieselskab bought a new position in shares of Cognizant Technology Solutions during the 4th quarter valued at about $84,574,000. Finally, Invesco Ltd. increased its position in shares of Cognizant Technology Solutions by 8.6% during the 3rd quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider's stock valued at $840,669,000 after purchasing an additional 987,395 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Robert W. Baird set a $72.00 price objective on Cognizant Technology Solutions and gave the company a "neutral" rating in a research report on Friday, April 10th. Deutsche Bank Aktiengesellschaft upgraded Cognizant Technology Solutions from a "hold" rating to a "buy" rating and set a $100.00 price objective on the stock in a research report on Monday, January 26th. Guggenheim reduced their price objective on Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Morgan Stanley reduced their price objective on Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 30th. Finally, Nomura increased their price objective on Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, Cognizant Technology Solutions presently has an average rating of "Hold" and an average target price of $73.00.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $52.32 on Friday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. Cognizant Technology Solutions Corporation has a fifty-two week low of $45.48 and a fifty-two week high of $87.03. The stock has a 50 day moving average price of $57.24 and a two-hundred day moving average price of $69.95. The company has a market capitalization of $24.79 billion, a P/E ratio of 11.37, a PEG ratio of 1.08 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share 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 firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter in the previous year, the company posted $1.23 earnings per share. The business'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. Analysts expect that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, May 18th. Cognizant Technology Solutions's dividend payout ratio is 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has authorized a share buyback 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 repurchase up to 9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Cognizant Technology Solutions 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.

Want to see what other hedge funds are holding CTSH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.