Dalton Investments Inc. Acquires 71,100 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Dalton Investments increased its stake in Cognizant Technology Solutions by 32.8% in the fourth quarter, buying 71,100 shares and bringing its total to 288,138 shares. The position is now Dalton’s second-largest holding, worth about $23.9 million.
• Several analysts have cut price targets for CTSH, and the stock currently carries a consensus rating of Hold with an average target price of $73.50. Recent moves included reductions from BMO Capital Markets, HSBC, Morgan Stanley, and DBS Bank.
• Cognizant reported better-than-expected quarterly earnings of $1.40 per share, while revenue matched estimates at $5.41 billion and rose 5.8% year over year. The company also pays a quarterly dividend and recently authorized a $2 billion share repurchase program.

Dalton Investments Inc. boosted its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 32.8% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 288,138 shares of the information technology service provider's stock after buying an additional 71,100 shares during the period. Cognizant Technology Solutions accounts for approximately 17.7% of Dalton Investments Inc.'s holdings, making the stock its 2nd largest holding. Dalton Investments Inc. owned approximately 0.06% of Cognizant Technology Solutions worth $23,915,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in CTSH. Temasek Holdings Private Ltd purchased a new stake in shares of Cognizant Technology Solutions during the 3rd quarter valued at about $55,217,000. OFI Invest Asset Management purchased a new stake in shares of Cognizant Technology Solutions during the 4th quarter valued at about $8,421,000. LSV Asset Management raised its holdings in shares of Cognizant Technology Solutions by 4.3% during the 3rd quarter. LSV Asset Management now owns 1,749,490 shares of the information technology service provider's stock valued at $117,338,000 after buying an additional 71,711 shares during the period. Todd Asset Management LLC raised its holdings in shares of Cognizant Technology Solutions by 23.7% during the 3rd quarter. Todd Asset Management LLC now owns 548,763 shares of the information technology service provider's stock valued at $36,806,000 after buying an additional 105,197 shares during the period. Finally, Vanguard Group Inc. raised its holdings in shares of Cognizant Technology Solutions by 0.8% during the 3rd 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 buying an additional 493,912 shares during the period. 92.44% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages recently commented on CTSH. BMO Capital Markets dropped their target price on Cognizant Technology Solutions from $83.00 to $63.00 in a report on Thursday, April 30th. HSBC dropped their target price on Cognizant Technology Solutions from $98.00 to $80.00 in a report on Thursday, April 30th. Morgan Stanley decreased their target price on Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating for the company in a research report on Thursday, April 30th. Dbs Bank decreased their target price on Cognizant Technology Solutions from $80.00 to $66.00 in a research report on Thursday, May 7th. Finally, Weiss Ratings lowered Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 13th. Eleven analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, Cognizant Technology Solutions has a consensus rating of "Hold" and a consensus target price of $73.50.

Cognizant Technology Solutions Stock Down 1.2%

Shares of Cognizant Technology Solutions stock opened at $51.18 on Friday. The business's fifty day moving average price is $54.97 and its two-hundred day moving average price is $67.87. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The company has a market capitalization of $24.25 billion, a P/E ratio of 11.13, a PEG ratio of 1.09 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 1-year low of $45.48 and a 1-year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted 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 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 in the previous year, the business earned $1.23 EPS. The company's quarterly revenue 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. As a group, research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The company 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. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Monday, May 18th. Cognizant Technology Solutions's payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has initiated a share repurchase program on Monday, May 18th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership 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.

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