Mizuho Markets Americas LLC Sells 75,000 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Mizuho Markets Americas LLC cut its Cognizant Technology Solutions stake by 11.5% in the fourth quarter, selling 75,000 shares and leaving it with 575,000 shares valued at about $47.7 million.
• Cognizant’s latest quarter beat earnings expectations, reporting $1.40 EPS versus the $1.33 consensus, while revenue came in at $5.41 billion, up 5.8% year over year.
• The company also announced a $2 billion share buyback and a quarterly dividend of $0.33 per share, yielding about 2.5%, even as Wall Street’s overall view remains a “Hold” with a $73 consensus price target.

Mizuho Markets Americas LLC decreased its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 11.5% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 575,000 shares of the information technology service provider's stock after selling 75,000 shares during the period. Cognizant Technology Solutions makes up about 0.9% of Mizuho Markets Americas LLC's portfolio, making the stock its 25th biggest position. Mizuho Markets Americas LLC owned about 0.12% of Cognizant Technology Solutions worth $47,725,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of CTSH. CIBC Bancorp USA Inc. bought a new stake in shares of Cognizant Technology Solutions during the 3rd quarter worth $201,834,000. Voloridge Investment Management LLC grew its position in Cognizant Technology Solutions by 801.4% in the third quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider's stock valued at $141,134,000 after acquiring an additional 1,870,834 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its position in Cognizant Technology Solutions by 144.3% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 2,631,890 shares of the information technology service provider's stock valued at $176,521,000 after acquiring an additional 1,554,648 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new position in Cognizant Technology Solutions during the fourth quarter worth about $84,574,000. Finally, Invesco Ltd. lifted its holdings in shares of Cognizant Technology Solutions by 8.6% in the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider's stock worth $840,669,000 after acquiring an additional 987,395 shares during the last quarter. Institutional investors and hedge funds own 92.44% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on CTSH shares. Argus upgraded shares of Cognizant Technology Solutions to a "hold" rating in a research note on Tuesday, February 10th. Jefferies Financial Group lowered their price objective on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating for the company in a research report on Monday, May 4th. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, April 29th. Berenberg Bank decreased their target price on shares of Cognizant Technology Solutions from $107.00 to $81.00 and set a "buy" rating on the stock in a research note on Monday, May 11th. Finally, UBS Group lowered their price target on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a report on Monday, May 11th. Ten analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, Cognizant Technology Solutions currently has an average rating of "Hold" and a consensus target price of $73.00.

Cognizant Technology Solutions Stock Performance

Cognizant Technology Solutions stock opened at $52.75 on Friday. The business has a 50 day moving average of $57.05 and a 200-day moving average of $69.83. The company has a market capitalization of $25.00 billion, a P/E ratio of 11.47, a P/E/G ratio of 1.10 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 1 year low of $45.48 and a 1 year high of $87.03. 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 posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping 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 for the quarter, compared to the consensus estimate of $5.41 billion. During the same period last year, the company earned $1.23 EPS. The firm's 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. On average, equities research analysts predict that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

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

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock buyback program on Monday, May 18th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

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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