MUFG Securities EMEA plc Acquires 32,824 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• MUFG Securities EMEA plc increased its Cognizant Technology Solutions stake by 351.1% in the fourth quarter, buying 32,824 additional shares and bringing its total holdings to 42,172 shares worth about $3.5 million.
• Cognizant reported better-than-expected quarterly earnings of $1.40 per share, with revenue of $5.41 billion and 5.8% year-over-year revenue growth. The company also guided FY 2026 EPS at 5.63–5.77.
• The company authorized a $2 billion share repurchase plan and recently paid a quarterly dividend of $0.33 per share, implying an annualized yield of about 2.3%.

MUFG Securities EMEA plc raised its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 351.1% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 42,172 shares of the information technology service provider's stock after purchasing an additional 32,824 shares during the quarter. MUFG Securities EMEA plc's holdings in Cognizant Technology Solutions were worth $3,500,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Catalyst Capital Advisors LLC increased its stake in Cognizant Technology Solutions by 590.6% during the 4th quarter. Catalyst Capital Advisors LLC now owns 1,692 shares of the information technology service provider's stock valued at $140,000 after purchasing an additional 1,447 shares in the last quarter. Norges Bank bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at about $690,959,000. Eurizon Capital SGR S.p.A. bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at about $46,237,000. FUKOKU MUTUAL LIFE INSURANCE Co bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at about $208,000. Finally, National Pension Service increased its stake in Cognizant Technology Solutions by 5.8% during the 4th quarter. National Pension Service now owns 913,503 shares of the information technology service provider's stock valued at $75,821,000 after purchasing an additional 49,783 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Stock Performance

CTSH opened at $57.16 on Tuesday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The company has a market cap of $27.09 billion, a price-to-earnings ratio of 12.43, a PEG ratio of 1.17 and a beta of 0.81. The company's 50 day moving average is $56.22 and its 200 day moving average is $69.00. Cognizant Technology Solutions Corporation has a 12-month low of $45.48 and a 12-month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $5.41 billion for the quarter, compared to the consensus estimate of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm's revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.23 earnings per share. 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 EPS for the current year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a stock repurchase 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 reacquire up to 9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of research firms have weighed in on CTSH. Evercore reduced their price objective on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research note on Thursday, April 30th. Citigroup dropped their price target on shares of Cognizant Technology Solutions from $58.00 to $51.00 and set a "neutral" rating on the stock in a report on Friday, May 15th. The Goldman Sachs Group set a $75.00 price target on shares of Cognizant Technology Solutions in a report on Wednesday, April 29th. UBS Group dropped their price target on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a report on Monday, May 11th. Finally, Truist Financial began coverage on shares of Cognizant Technology Solutions in a report on Monday. They set a "hold" rating and a $66.00 price target on the stock. Ten research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, Cognizant Technology Solutions currently has a consensus rating of "Hold" and a consensus price target of $72.68.

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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