Cognizant Technology Solutions Corporation $CTSH Stock: Vontobel Holding Ltd. Increases Stake

Key Points

• Vontobel Holding increased its Cognizant stake by 761.3% in the third quarter, bringing its holdings to 1.86 million shares valued at approximately $106.8 million. Institutional investors collectively own 92.44% of CTSH.
• Analyst sentiment remains mixed, with 10 Buy, 13 Hold, and 1 Sell rating; the stock carries an overall “Hold” consensus and a $64.70 average price target.
• Cognizant reported quarterly revenue of $5.48 billion, up 4.5% year over year, though EPS of $1.37 slightly missed estimates. The company also pays a quarterly dividend of $0.33, equivalent to a 2.0% yield.

Vontobel Holding Ltd. lifted its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 761.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,859,134 shares of the information technology service provider's stock after purchasing an additional 1,643,271 shares during the quarter. Vontobel Holding Ltd. owned approximately 0.41% of Cognizant Technology Solutions worth $106,789,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Assenagon Asset Management S.A. lifted its position in Cognizant Technology Solutions by 925.5% in the second quarter. Assenagon Asset Management S.A. now owns 3,652,358 shares of the information technology service provider's stock worth $141,456,000 after purchasing an additional 3,296,205 shares during the period. Pzena Investment Management LLC boosted its stake in Cognizant Technology Solutions by 14.9% during 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 buying an additional 2,633,683 shares in the last quarter. Artemis Investment Management LLP increased its holdings in 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 valued at $166,897,000 after buying an additional 2,159,704 shares during the period. Lazard Asset Management LLC increased its holdings in Cognizant Technology Solutions by 752.1% in the 1st quarter. Lazard Asset Management LLC now owns 1,317,166 shares of the information technology service provider's stock valued at $80,808,000 after buying an additional 1,162,580 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Cognizant Technology Solutions in the 2nd quarter valued at $33,117,000. 92.44% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CTSH. Weiss Ratings reiterated a "hold (c-)" rating on shares of Cognizant Technology Solutions in a research report on Friday, August 7th. Guggenheim reissued a "buy" rating and issued a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research note on Monday, July 27th. Citigroup reissued a "neutral" rating and issued a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a research report on Thursday, July 30th. JPMorgan Chase & Co. dropped their price target on shares of Cognizant Technology Solutions from $74.00 to $55.00 and set an "overweight" rating for the company in a research report on Friday, July 24th. Finally, HSBC cut their price target on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. Ten analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Cognizant Technology Solutions presently has an average rating of "Hold" and a consensus price target of $64.70.

Cognizant Technology Solutions Price Performance

Cognizant Technology Solutions stock traded up $0.26 during mid-day trading on Friday, hitting $66.03. 5,323,537 shares of the company were exchanged, compared to its average volume of 7,169,654. The company has a market capitalization of $29.74 billion, a PE ratio of 14.20, a price-to-earnings-growth ratio of 1.23 and a beta of 0.86. The business has a fifty day moving average of $60.47 and a 200 day moving average of $54.46. Cognizant Technology Solutions Corporation has a 1-year low of $37.08 and a 1-year high of $87.03. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.01). Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The firm had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the prior year, the firm posted $1.31 EPS. The firm's revenue for the quarter was up 4.5% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. As a group, sell-side analysts expect that Cognizant Technology Solutions Corporation will post 5.74 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 18th were given a $0.33 dividend. The ex-dividend date was Tuesday, August 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.0%. Cognizant Technology Solutions's payout ratio is 28.39%.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation NASDAQ: CTSH is a global professional services and information technology company that helps businesses modernize their operations and technology infrastructure. Its services include IT consulting, systems integration, application development and modernization, cloud computing, data and analytics, artificial intelligence, cybersecurity, and digital engineering.

The company also provides business process services and industry-specific solutions for sectors such as financial services, healthcare, life sciences, manufacturing, retail, communications, and information technology.

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