Geode Capital Management LLC Sells 44,874 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Geode Capital Management trimmed its Cognizant Technology Solutions stake slightly in the fourth quarter, selling 44,874 shares and still holding about 14.35 million shares worth roughly $1.19 billion.
• Cognizant reported better-than-expected quarterly earnings, posting $1.40 EPS versus the $1.33 estimate, while revenue came in at $5.41 billion and rose 5.8% year over year.
• The company also boosted shareholder returns with a quarterly dividend of $0.33 per share and a new $2 billion stock repurchase authorization, which could cover up to 9% of its shares.

Geode Capital Management LLC lessened its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 0.3% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 14,353,281 shares of the information technology service provider's stock after selling 44,874 shares during the quarter. Geode Capital Management LLC owned about 2.97% of Cognizant Technology Solutions worth $1,190,014,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Flagship Harbor Advisors LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Physician Wealth Advisors Inc. raised its stake in shares of Cognizant Technology Solutions by 165.1% during the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock worth $28,000 after acquiring an additional 213 shares in the last quarter. Lodestone Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Towne Trust Company N.A boosted its stake in Cognizant Technology Solutions by 85.0% in the 4th quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock worth $31,000 after purchasing an additional 170 shares in the last quarter. Finally, JPL Wealth Management LLC acquired a new stake in Cognizant Technology Solutions in the 3rd quarter worth approximately $25,000. Institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ CTSH opened at $55.76 on Friday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. The company has a 50 day simple moving average of $56.31 and a two-hundred day simple moving average of $69.14. The stock has a market cap of $26.42 billion, a price-to-earnings ratio of 12.12, a PEG ratio of 1.13 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 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The business had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. During the same period in the previous year, the business posted $1.23 EPS. The business'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, analysts predict that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Monday, May 18th. Cognizant Technology Solutions's payout ratio is 28.70%.

Cognizant Technology Solutions declared that its board has authorized a stock repurchase plan on Monday, May 18th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CTSH. Robert W. Baird set a $72.00 target price on shares of Cognizant Technology Solutions and gave the stock a "neutral" rating in a research note on Friday, April 10th. Dbs Bank lowered their target price on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. The Goldman Sachs Group set a $75.00 target price on shares of Cognizant Technology Solutions in a research note on Wednesday, April 29th. Citigroup lowered their target price on shares of Cognizant Technology Solutions from $58.00 to $51.00 and set a "neutral" rating for the company in a research note on Friday, May 15th. Finally, Wedbush decreased their price objective on shares of Cognizant Technology Solutions from $61.00 to $56.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $73.00.

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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