Hendershot Investments Inc. Has $16.71 Million Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Hendershot Investments increased its stake in Cognizant Technology Solutions by 16.1% in Q1, bringing its holding to 272,311 shares worth about $16.7 million.
• Analysts remain mixed on CTSH: several firms cut price targets, and the stock’s consensus rating is Hold with an average target price of $68.35.
• Cognizant reported Q1 EPS of $1.40, beating estimates, and also announced a $2 billion share repurchase program along with a quarterly dividend that annualizes to a 3.1% yield.

Hendershot Investments Inc. lifted its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 16.1% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 272,311 shares of the information technology service provider's stock after purchasing an additional 37,709 shares during the period. Cognizant Technology Solutions accounts for about 2.2% of Hendershot Investments Inc.'s portfolio, making the stock its 14th largest position. Hendershot Investments Inc. owned 0.06% of Cognizant Technology Solutions worth $16,706,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in CTSH. Evolve Private Wealth LLC acquired a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $2,642,000. Temasek Holdings Private Ltd bought a new position in shares of Cognizant Technology Solutions in the third quarter worth about $55,217,000. OFI Invest Asset Management acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter worth approximately $8,421,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Cognizant Technology Solutions by 34.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider's stock valued at $238,565,000 after purchasing an additional 734,337 shares during the last quarter. Finally, Corient Private Wealth LLC grew its stake in shares of Cognizant Technology Solutions by 44.4% during the fourth quarter. Corient Private Wealth LLC now owns 108,131 shares of the information technology service provider's stock valued at $8,977,000 after purchasing an additional 33,248 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

CTSH has been the subject of several research analyst reports. HSBC dropped their price objective on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating for the company in a research report on Wednesday. Guggenheim lowered their target price on Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Nomura dropped their target price on Cognizant Technology Solutions from $93.00 to $74.00 and set a "buy" rating for the company in a research report on Wednesday. Jefferies Financial Group cut their price target on Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Finally, The Goldman Sachs Group set a $75.00 price target on Cognizant Technology Solutions in a report on Wednesday, April 29th. Eleven analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $68.35.

Cognizant Technology Solutions Price Performance

Cognizant Technology Solutions stock opened at $41.99 on Friday. The company's 50 day simple moving average is $49.48 and its 200 day simple moving average is $63.94. Cognizant Technology Solutions Corporation has a fifty-two week low of $37.08 and a fifty-two week high of $87.03. The firm has a market capitalization of $19.90 billion, a price-to-earnings ratio of 9.13, a PEG ratio of 0.88 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 firm had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. During the same quarter in the previous year, the company earned $1.23 earnings per share. The business's revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, sell-side analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were given a $0.33 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. Cognizant Technology Solutions's dividend payout ratio is currently 28.70%.

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