Norges Bank Takes Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Norges Bank disclosed a new stake in Cognizant Technology Solutions, buying 8.3 million shares valued at about $691 million and representing roughly 1.72% of the company.
• Cognizant’s latest quarterly results beat earnings expectations, with EPS of $1.40 versus the $1.33 estimate, while revenue came in at $5.41 billion and rose 5.8% year over year.
• The company also highlighted shareholder returns and capital allocation, including a $0.33 quarterly dividend and a new $2 billion stock buyback authorization covering up to 9% of shares.

Norges Bank acquired a new stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 8,324,807 shares of the information technology service provider's stock, valued at approximately $690,959,000. Norges Bank owned about 1.72% of Cognizant Technology Solutions as of its most recent filing with the SEC.

Other institutional investors also recently modified their holdings of the company. Flagship Harbor Advisors LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at $28,000. Physician Wealth Advisors Inc. boosted its stake in shares of 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 purchasing an additional 213 shares during the last quarter. Lodestone Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at $28,000. Towne Trust Company N.A boosted its stake in shares of 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 purchasing an additional 170 shares during the last quarter. Finally, JPL Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions in the 3rd quarter valued at $25,000. 92.44% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have recently commented on CTSH. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a research note 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 research note on Tuesday, April 28th. Jefferies Financial Group cut their target price 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. BMO Capital Markets cut their target price on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a research note on Thursday, April 30th. Finally, Nomura increased their target price on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Ten analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $73.00.

Cognizant Technology Solutions Stock Performance

Shares of CTSH opened at $55.76 on Monday. The firm has a market capitalization of $26.42 billion, a P/E ratio of 12.12, a P/E/G ratio of 1.17 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 52 week low of $45.48 and a 52 week high of $87.03. The stock has a 50 day moving average price of $56.31 and a two-hundred day moving average price of $69.11. 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 issued its quarterly earnings data 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. The firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The company's quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the prior year, the business posted $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were paid a $0.33 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. Cognizant Technology Solutions's dividend payout ratio is 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock buyback plan on Monday, May 18th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to buy up to 9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

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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