Polianta Ltd Purchases New Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Polianta Ltd opened a new position in Cognizant Technology Solutions during the first quarter, buying 24,500 shares valued at about $1.5 million.
• Cognizant reported better-than-expected quarterly earnings of $1.40 per share, with revenue of $5.41 billion and year-over-year revenue growth of 5.8%.
• The company authorized a $2 billion stock buyback and recently paid a quarterly dividend of $0.33 per share, representing a 3.0% yield.

Polianta Ltd acquired a new position in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 24,500 shares of the information technology service provider's stock, valued at approximately $1,503,000.

Several other institutional investors also recently bought and sold shares of the company. JPL Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions in the 3rd quarter worth $25,000. Lodestone Wealth Management LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $28,000. Flagship Harbor Advisors LLC bought a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Physician Wealth Advisors Inc. raised its holdings in shares of Cognizant Technology Solutions by 165.1% in the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after acquiring an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in Cognizant Technology Solutions in the fourth quarter worth about $29,000. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Price Performance

CTSH opened at $43.70 on Friday. The business's 50-day moving average is $53.35 and its two-hundred day moving average is $66.75. Cognizant Technology Solutions Corporation has a 1 year low of $43.40 and a 1 year high of $87.03. 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 $20.71 billion, a PE ratio of 9.50, a price-to-earnings-growth ratio of 0.92 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its 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. The business had revenue of $5.41 billion during 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% on a year-over-year basis. During the same period in the previous year, the company posted $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Research analysts anticipate that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions announced that its Board of Directors has authorized 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 repurchase up to 9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Cognizant Technology Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions's payout ratio is 28.70%.

Analyst Ratings Changes

A number of research firms have commented on CTSH. Morgan Stanley cut their target price on shares of Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 30th. Mizuho lowered their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Dbs Bank dropped their price objective on shares of Cognizant Technology Solutions from $80.00 to $66.00 in a research note on Thursday, May 7th. Nomura lifted their price objective on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Finally, HSBC reduced their price objective on shares of Cognizant Technology Solutions from $98.00 to $80.00 in a research note on Thursday, April 30th. Ten analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $72.50.

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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