Dimensional Fund Advisors LP Acquires 222,819 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Dimensional Fund Advisors LP increased its stake in Cognizant Technology Solutions by 3.6% in the first quarter, adding 222,819 shares and bringing its total holding to 6.4 million shares worth about $393 million.
• Several analysts remain cautious on CTSH: the stock has a consensus rating of Hold with an average price target of $64.26, even as some firms cut their targets in recent reports.
• Cognizant reported better-than-expected earnings for the latest quarter, raised its FY 2026 EPS guidance, and recently announced a $2 billion share buyback plus a quarterly dividend yielding about 3.0%.

Dimensional Fund Advisors LP lifted its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 3.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,404,918 shares of the information technology service provider's stock after buying an additional 222,819 shares during the period. Dimensional Fund Advisors LP owned approximately 1.34% of Cognizant Technology Solutions worth $392,947,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. JPL Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions during the 3rd quarter valued at about $25,000. Lodestone Wealth Management LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $28,000. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions during the fourth quarter valued at approximately $28,000. Physician Wealth Advisors Inc. lifted its position in Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after purchasing an additional 213 shares during the period. Finally, Prosperity Bancshares Inc purchased a new stake in Cognizant Technology Solutions in the fourth quarter worth approximately $29,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CTSH. Jefferies Financial Group decreased their target price on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating for the company in a research note on Monday, May 4th. Susquehanna dropped their price target on Cognizant Technology Solutions from $98.00 to $88.00 and set a "positive" rating on the stock in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on Cognizant Technology Solutions in a research report on Friday, July 10th. Weiss Ratings downgraded Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 13th. Finally, BMO Capital Markets dropped their target price on Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Ten analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $64.26.

Cognizant Technology Solutions Trading Down 2.3%

Shares of CTSH stock opened at $43.63 on Wednesday. Cognizant Technology Solutions Corporation has a 1 year low of $37.08 and a 1 year high of $87.03. The firm has a fifty day moving average price of $47.29 and a 200-day moving average price of $60.32. 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 cap of $20.67 billion, a price-to-earnings ratio of 9.48, a PEG ratio of 0.98 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results 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. The company had revenue of $5.41 billion for the quarter, compared to analysts' expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.Cognizant Technology Solutions's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the firm earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities analysts predict that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The business 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. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 3.0%. Cognizant Technology Solutions's dividend payout ratio (DPR) is 28.70%.

Cognizant Technology Solutions announced that its board has initiated a stock buyback program on Monday, May 18th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to purchase up to 9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is 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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