Maytus Capital Management LLC Invests $6.72 Million in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Maytus Capital Management opened a new position in Cognizant Technology Solutions, buying 81,000 shares worth about $6.72 million. The stake represents about 1.6% of the firm’s portfolio.
• Cognizant reported better-than-expected quarterly earnings, posting $1.40 EPS versus $1.33 expected, while revenue came in at $5.41 billion and rose 5.8% year over year.
• The company also announced a $2 billion share repurchase plan and paid a quarterly dividend of $0.33 per share, reflecting a 2.6% annualized yield. Analysts currently have a mixed view, with a consensus rating of Hold and an average price target of $72.50.

Maytus Capital Management LLC acquired a new position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 81,000 shares of the information technology service provider's stock, valued at approximately $6,723,000. Cognizant Technology Solutions accounts for approximately 1.6% of Maytus Capital Management LLC's investment portfolio, making the stock its 23rd biggest position.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its stake 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 worth $4,047,570,000 after purchasing an additional 493,912 shares during the period. Pzena Investment Management LLC grew its stake in shares of Cognizant Technology Solutions by 1.5% during the 3rd quarter. Pzena Investment Management LLC now owns 17,710,868 shares of the information technology service provider's stock worth $1,187,868,000 after purchasing an additional 260,177 shares during the period. Invesco Ltd. grew its stake in shares of Cognizant Technology Solutions by 8.6% during the 3rd quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider's stock worth $840,669,000 after purchasing an additional 987,395 shares during the period. First Trust Advisors LP grew its stake in shares of Cognizant Technology Solutions by 7.6% during the 3rd quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider's stock worth $609,398,000 after purchasing an additional 639,801 shares during the period. Finally, Norges Bank acquired a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $690,959,000. Institutional investors and hedge funds own 92.44% of the company's stock.

Cognizant Technology Solutions Price Performance

Cognizant Technology Solutions stock opened at $51.05 on Wednesday. The company's fifty day moving average price is $54.32 and its 200 day moving average price is $67.35. Cognizant Technology Solutions Corporation has a 1 year low of $45.48 and a 1 year high of $87.03. The stock has a market capitalization of $24.19 billion, a P/E ratio of 11.10, a P/E/G ratio of 1.07 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 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. The company had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm's revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities research analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were issued a $0.33 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 2.6%. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions declared that its Board of Directors has authorized a share repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

CTSH has been the topic of a number of analyst reports. Mizuho dropped their price objective on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. Jefferies Financial Group dropped their price target on shares of 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. Truist Financial assumed coverage on shares of Cognizant Technology Solutions in a research note on Monday, June 1st. They issued a "hold" rating and a $66.00 price target on the stock. Dbs Bank dropped their price target on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Finally, Weiss Ratings cut shares of Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. Eleven analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $72.50.

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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