LSV Asset Management Buys 57,428 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• LSV Asset Management boosted its stake in Cognizant Technology Solutions by 3.3% in the fourth quarter, buying 57,428 shares and bringing its total holding to 1,806,918 shares valued at about $150 million.
• Cognizant reported better-than-expected quarterly earnings, with EPS of $1.40 versus the $1.33 estimate, while revenue of $5.41 billion matched forecasts and rose 5.8% year over year.
• The company also announced a $2 billion stock buyback and a quarterly dividend of $0.33 per share, yielding about 2.5%, though analysts currently rate the stock a consensus Hold with an average price target of $73.

LSV Asset Management increased its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 3.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,806,918 shares of the information technology service provider's stock after acquiring an additional 57,428 shares during the quarter. LSV Asset Management owned about 0.37% of Cognizant Technology Solutions worth $149,974,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. AustralianSuper Pty Ltd bought a new position in shares of Cognizant Technology Solutions in the 3rd quarter worth about $4,422,000. Alps Advisors Inc. increased its stake in shares of Cognizant Technology Solutions by 16.5% in the 3rd quarter. Alps Advisors Inc. now owns 306,078 shares of the information technology service provider's stock worth $20,529,000 after acquiring an additional 43,252 shares in the last quarter. Arjuna Capital increased its stake in shares of Cognizant Technology Solutions by 62.6% in the 3rd quarter. Arjuna Capital now owns 24,622 shares of the information technology service provider's stock worth $1,651,000 after acquiring an additional 9,482 shares in the last quarter. National Pension Service increased its stake in shares of Cognizant Technology Solutions by 5.5% in the 3rd quarter. National Pension Service now owns 863,720 shares of the information technology service provider's stock worth $57,930,000 after acquiring an additional 45,016 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. increased its stake in shares of Cognizant Technology Solutions by 11.0% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 193,464 shares of the information technology service provider's stock worth $12,976,000 after acquiring an additional 19,177 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $52.75 on Friday. Cognizant Technology Solutions Corporation has a one year low of $45.48 and a one year high of $87.03. The company's 50-day moving average is $57.05 and its 200 day moving average is $69.83. The company has a market capitalization of $25.00 billion, a price-to-earnings ratio of 11.47, a price-to-earnings-growth ratio of 1.10 and a beta of 0.81. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23.

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 company had revenue of $5.41 billion for the quarter, compared to the consensus estimate of $5.41 billion. During the same period in the prior year, the firm posted $1.23 EPS. Cognizant Technology Solutions'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. Sell-side analysts expect that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Monday, May 18th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Monday, May 18th. Cognizant Technology Solutions's dividend payout ratio is 28.70%.

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

Analyst Upgrades and Downgrades

CTSH has been the subject of several research reports. Dbs Bank decreased their price target on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Morgan Stanley decreased their price target on shares of Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating for the company in a research note on Thursday, April 30th. Argus upgraded shares of Cognizant Technology Solutions to a "hold" rating in a research note on Tuesday, February 10th. Wells Fargo & Company decreased their price target on shares of Cognizant Technology Solutions from $98.00 to $83.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Finally, Evercore decreased their price target on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research note on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $73.00.

About Cognizant Technology Solutions

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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