MKP Capital Management L.L.C. Invests $12.45 Million in Cognizant Technology Solutions Corporation $CTSH

Key Points

• MKP Capital Management opened a new position in Cognizant Technology Solutions during the fourth quarter, buying 150,000 shares worth about $12.45 million. The stake represents roughly 0.4% of MKP’s holdings.
• Analyst sentiment remains mixed, with 10 analysts rating the stock a Buy and 13 a Hold. The consensus price target is $72.68, while several firms recently cut their targets.
• Cognizant reported better-than-expected quarterly earnings of $1.40 per share and announced a $2 billion share buyback, signaling management confidence in the stock.

MKP Capital Management L.L.C. acquired a new stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 150,000 shares of the information technology service provider's stock, valued at approximately $12,450,000. Cognizant Technology Solutions accounts for about 0.4% of MKP Capital Management L.L.C.'s holdings, making the stock its 20th largest position.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. JPL Wealth Management LLC purchased a new stake in Cognizant Technology Solutions in the 3rd quarter valued at about $25,000. Lodestone Wealth Management LLC purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $28,000. Flagship Harbor Advisors LLC purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $28,000. Physician Wealth Advisors Inc. raised its holdings in Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after buying an additional 213 shares during the period. Finally, Towne Trust Company N.A raised its holdings 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 valued at $31,000 after buying an additional 170 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Dbs Bank reduced their price objective on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a report on Wednesday, April 29th. JPMorgan Chase & Co. reduced their price objective on shares of Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating on the stock in a report on Tuesday, April 28th. Royal Bank Of Canada boosted their price objective on shares of Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. Finally, Truist Financial assumed coverage on shares of Cognizant Technology Solutions in a research note on Monday. They set a "hold" rating and a $66.00 price target on the stock. Ten analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $72.68.

Cognizant Technology Solutions Stock Up 2.5%

Shares of NASDAQ:CTSH opened at $57.16 on Tuesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The firm has a market capitalization of $27.09 billion, a PE ratio of 12.43, a price-to-earnings-growth ratio of 1.17 and a beta of 0.81. The firm's 50-day moving average is $56.22 and its two-hundred day moving average is $69.00. Cognizant Technology Solutions Corporation has a 1 year low of $45.48 and a 1 year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, topping 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 company had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same period in the prior year, the firm earned $1.23 earnings per share. The business's revenue for the quarter 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. Analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

Cognizant Technology Solutions declared that its Board of Directors has approved a share 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 purchase up to 9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.3%. Cognizant Technology Solutions's payout ratio is currently 28.70%.

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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