Natixis Advisors LLC Cuts Stock Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Natixis Advisors LLC reduced its Cognizant Technology Solutions stake by 29% in the fourth quarter, selling 164,456 shares and leaving it with 402,353 shares valued at about $33.4 million.
• Cognizant reported better-than-expected quarterly earnings of $1.40 per share on revenue of $5.41 billion, while also issuing FY 2026 EPS guidance of 5.630 to 5.770.
• The company approved a $2 billion stock buyback and paid a quarterly dividend of $0.33 per share, equal to an annualized yield of about 2.5%.

Natixis Advisors LLC lessened its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 29.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 402,353 shares of the information technology service provider's stock after selling 164,456 shares during the period. Natixis Advisors LLC owned 0.08% of Cognizant Technology Solutions worth $33,395,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in Cognizant Technology Solutions by 0.8% in the third quarter. Vanguard Group Inc. now owns 60,348,442 shares of the information technology service provider's stock valued at $4,047,570,000 after purchasing an additional 493,912 shares during the last quarter. Pzena Investment Management LLC lifted its holdings in Cognizant Technology Solutions by 1.5% in the third quarter. Pzena Investment Management LLC now owns 17,710,868 shares of the information technology service provider's stock valued at $1,187,868,000 after acquiring an additional 260,177 shares during the period. Invesco Ltd. lifted its holdings in 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 valued at $840,669,000 after acquiring an additional 987,395 shares during the period. First Trust Advisors LP lifted its holdings in Cognizant Technology Solutions by 7.6% in the third quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider's stock valued at $609,398,000 after acquiring an additional 639,801 shares during the period. Finally, Norges Bank acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at approximately $690,959,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Down 0.2%

Cognizant Technology Solutions stock opened at $53.40 on Friday. The stock has a market capitalization of $25.30 billion, a PE ratio of 11.61, a price-to-earnings-growth ratio of 1.13 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 12 month low of $45.48 and a 12 month high of $87.03. The business has a 50 day simple moving average of $55.78 and a 200-day simple moving average of $68.59. 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 quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. The business had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business's revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the business earned $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

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

Cognizant Technology Solutions Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CTSH. Truist Financial began coverage on Cognizant Technology Solutions in a report on Monday. They issued a "hold" rating and a $66.00 price target for the company. HSBC decreased their price target on Cognizant Technology Solutions from $98.00 to $80.00 in a report on Thursday, April 30th. The Goldman Sachs Group set a $75.00 price target on Cognizant Technology Solutions in a report on Wednesday, April 29th. JPMorgan Chase & Co. decreased their price target on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Finally, Argus raised Cognizant Technology Solutions to a "hold" rating in a report on Tuesday, February 10th. Ten research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price 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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