Cognizant Technology Solutions Corporation $CTSH Stock Sold by Ashoka WhiteOak Capital Pte Ltd

Key Points

• Ashoka WhiteOak Capital cut its Cognizant position by 9.1% in the third quarter, selling 43,130 shares and retaining 428,340 shares worth approximately $24.6 million.
• Cognizant exceeded quarterly expectations, reporting $1.49 in earnings per share and $5.66 billion in revenue, while declaring a $0.33 quarterly dividend equivalent to a 2.1% yield.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and $68.04 price target; concerns include a 7% year-over-year decline in bookings and slower underlying organic growth.

Ashoka WhiteOak Capital Pte Ltd reduced its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 9.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 428,340 shares of the information technology service provider's stock after selling 43,130 shares during the quarter. Cognizant Technology Solutions accounts for approximately 7.2% of Ashoka WhiteOak Capital Pte Ltd's holdings, making the stock its 2nd biggest position. Ashoka WhiteOak Capital Pte Ltd owned about 0.10% of Cognizant Technology Solutions worth $24,604,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Pzena Investment Management LLC raised its position in Cognizant Technology Solutions by 14.9% in the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock worth $1,243,096,000 after acquiring an additional 2,633,683 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Cognizant Technology Solutions by 3.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,404,918 shares of the information technology service provider's stock valued at $392,947,000 after acquiring an additional 222,819 shares during the period. Amundi grew its position in shares of Cognizant Technology Solutions by 9.2% during the 1st quarter. Amundi now owns 6,177,881 shares of the information technology service provider's stock valued at $379,013,000 after acquiring an additional 520,532 shares during the period. Hsbc Holdings PLC increased its stake in shares of Cognizant Technology Solutions by 27.2% in the 1st quarter. Hsbc Holdings PLC now owns 3,471,681 shares of the information technology service provider's stock worth $213,004,000 after purchasing an additional 742,466 shares in the last quarter. Finally, Artemis Investment Management LLP increased its stake in shares of Cognizant Technology Solutions by 289.6% in the 3rd quarter. Artemis Investment Management LLP now owns 2,905,584 shares of the information technology service provider's stock worth $166,897,000 after purchasing an additional 2,159,704 shares in the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CTSH. Mizuho set a $64.00 price objective on Cognizant Technology Solutions in a research report on Thursday, August 6th. Wedbush reissued an "outperform" rating and issued a $70.00 target price on shares of Cognizant Technology Solutions in a report on Friday, October 9th. Weiss Ratings raised shares of Cognizant Technology Solutions from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, October 19th. Daiwa Securities Group raised their target price on shares of Cognizant Technology Solutions from $42.00 to $60.00 and gave the stock a "neutral" rating in a research note on Friday, September 25th. Finally, TD Cowen reaffirmed a "hold" rating and set a $60.00 price target (up from $54.00) on shares of Cognizant Technology Solutions in a report on Tuesday, October 13th. Ten investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $68.04.

Cognizant Technology Solutions Price Performance

NASDAQ:CTSH opened at $62.52 on Friday. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. The business's 50-day simple moving average is $62.12 and its two-hundred day simple moving average is $59.39. The stock has a market cap of $28.16 billion, a PE ratio of 12.04, a P/E/G ratio of 1.24 and a beta of 0.86. Cognizant Technology Solutions Corporation has a 52 week low of $37.08 and a 52 week high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The information technology service provider reported $1.49 earnings per share for the quarter, topping analysts' consensus estimates of $1.46 by $0.03. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The firm had revenue of $5.66 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter in the prior year, the company posted $1.39 earnings per share. The business's quarterly revenue was up 4.6% compared to the same quarter last year. As a group, analysts forecast that Cognizant Technology Solutions Corporation will post 5.74 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Friday, November 13th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, November 13th. Cognizant Technology Solutions's dividend payout ratio is presently 28.39%.

Key Stories Impacting Cognizant Technology Solutions

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

• Positive Sentiment: Quarterly results exceeded expectations. Cognizant reported adjusted EPS of $1.49 versus the $1.46 consensus, while revenue of $5.66 billion topped estimates of $5.64 billion and increased 4.6% year over year. Cognizant Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Margins, cash flow and shareholder returns provided support. Adjusted operating margin expanded to 16.3%, free cash flow reached $1.582 billion, and Cognizant repurchased approximately $258 million of stock. The company also declared a quarterly dividend of $0.33 per share, equivalent to an annualized $1.32 payout and a roughly 2.1% yield. Cognizant Reports Third Quarter 2026 Results
• Neutral Sentiment: Full-year guidance still calls for growth, but expectations were reset. Cognizant now expects 2026 constant-currency revenue growth of 4.0% to 4.4%, adjusted operating margin of approximately 16.1% and adjusted EPS of $5.72 to $5.79. Brokerages’ average price target was reported at $68.04, potentially offering valuation support, although targets do not guarantee future performance. Cognizant Average Price Target
• Negative Sentiment: Bookings and organic growth raised the main concerns. Third-quarter bookings fell 7% year over year, while acquisitions and resold third-party products contributed roughly four percentage points of reported revenue growth. That suggests the core business grew more slowly than the headline 4.6% increase. Analysts also noted that per-share gains were aided by buybacks rather than stronger profitability, intensifying concerns about demand momentum. Cognizant Bookings Drop as Growth Slows

Cognizant Technology Solutions Profile

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant's services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.

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