Pictet Asset Management Holding SA Sells 154,297 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Pictet Asset Management Holding SA reduced its Cognizant Technology Solutions stake by 10.6% in the first quarter, selling 154,297 shares and ending with 1.30 million shares valued at about $79.7 million.
• Analysts remain cautious on CTSH: the stock has a consensus “Hold” rating, with an average price target of $69.70 despite recent target changes from several firms.
• Cognizant reported solid results and capital returns, beating EPS estimates in its latest quarter and authorizing a $2 billion share repurchase program, while also paying a quarterly dividend that annualizes to a 3.4% yield.

Pictet Asset Management Holding SA cut its position in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 10.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,298,864 shares of the information technology service provider's stock after selling 154,297 shares during the period. Pictet Asset Management Holding SA owned about 0.27% of Cognizant Technology Solutions worth $79,681,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors also recently modified their holdings of the company. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions during the fourth quarter valued at approximately $28,000. Physician Wealth Advisors Inc. raised its holdings in shares of Cognizant Technology Solutions by 165.1% during the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock worth $28,000 after acquiring an additional 213 shares in the last quarter. Lodestone Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Prosperity Bancshares Inc bought a new position in shares of Cognizant Technology Solutions during the 4th quarter valued at approximately $29,000. Finally, Towne Trust Company N.A grew its holdings in shares of Cognizant Technology Solutions by 85.0% in the fourth 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 in the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on CTSH. Morgan Stanley set a $44.00 price target on shares of Cognizant Technology Solutions and gave the company an "equal weight" rating in a research note on Tuesday, June 23rd. Weiss Ratings downgraded shares of Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 13th. Citigroup upped their target price on shares of Cognizant Technology Solutions from $51.00 to $55.00 and gave the company a "neutral" rating in a research report on Monday, June 8th. Susquehanna dropped their price target on Cognizant Technology Solutions from $98.00 to $88.00 and set a "positive" rating for the company in a research report on Friday, May 1st. Finally, Robert W. Baird set a $72.00 price objective on Cognizant Technology Solutions and gave the company a "neutral" rating in a research report on Friday, April 10th. Ten analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $69.70.

Cognizant Technology Solutions Stock Down 3.2%

NASDAQ:CTSH opened at $38.74 on Tuesday. The company has a market cap of $18.36 billion, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 0.84 and a beta of 0.81. Cognizant Technology Solutions Corporation has a twelve month low of $38.68 and a twelve month high of $87.03. 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 stock has a fifty day simple moving average of $51.02 and a 200-day simple moving average of $65.00.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 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 firm had revenue of $5.41 billion for the quarter, compared to analysts' expectations of $5.41 billion. During the same period in the prior year, the business posted $1.23 earnings per share. The business's revenue for the quarter was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current year.

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

Cognizant Technology Solutions Dividend Announcement

The business also recently announced 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 3.4%. Cognizant Technology Solutions's dividend payout ratio (DPR) is 28.70%.

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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