SG Americas Securities LLC Lowers Stock Holdings in Cognizant Technology Solutions Corporation $CTSH

Key Points

• SG Americas Securities LLC cut its Cognizant stake sharply in the first quarter, reducing holdings by 81.3% and selling 704,284 shares. It ended the period with 162,331 shares valued at about $10.0 million.
• Cognizant reported solid quarterly results, posting EPS of $1.40, ahead of estimates, on revenue of $5.41 billion. The company also guided FY2026 EPS to $5.63-$5.77.
• The company approved a $2 billion stock buyback and pays a dividend, authorizing repurchases of up to 9% of outstanding shares. Its quarterly dividend of $0.33 per share implies an annual yield of about 3.3%.

SG Americas Securities LLC lessened its position in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 81.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 162,331 shares of the information technology service provider's stock after selling 704,284 shares during the quarter. SG Americas Securities LLC's holdings in Cognizant Technology Solutions were worth $9,959,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently bought and sold shares of CTSH. Flagship Harbor Advisors LLC purchased a new stake in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. boosted its position in 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 buying an additional 213 shares during the period. Lodestone Wealth Management LLC acquired a new position in shares of Cognizant Technology Solutions in the fourth quarter worth $28,000. Prosperity Bancshares Inc purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth $29,000. Finally, Towne Trust Company N.A increased its position in shares of Cognizant Technology Solutions by 85.0% during the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock worth $31,000 after acquiring an additional 170 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Stock Up 2.2%

Cognizant Technology Solutions stock opened at $40.03 on Friday. Cognizant Technology Solutions Corporation has a 1-year low of $38.97 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 stock has a market cap of $18.97 billion, a PE ratio of 8.70, a P/E/G ratio of 0.82 and a beta of 0.81. The stock's fifty day moving average is $51.46 and its two-hundred day moving average is $65.41.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. During the same period in the prior year, the firm posted $1.23 EPS. The business's quarterly revenue was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, sell-side analysts expect 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 authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to purchase up to 9% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed 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 dividend on an annualized basis and a yield of 3.3%. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 28.70%.

Analyst Ratings Changes

CTSH has been the subject of a number of recent research reports. Dbs Bank decreased their target price on Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. Citigroup upped their price target on Cognizant Technology Solutions from $51.00 to $55.00 and gave the stock a "neutral" rating in a report on Monday, June 8th. JPMorgan Chase & Co. decreased their price objective on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating for the company in a research note on Tuesday, April 28th. Weiss Ratings downgraded Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 13th. Finally, Wedbush upgraded shares of Cognizant Technology Solutions from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $56.00 to $70.00 in a research note on Monday, June 8th. Ten investment analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $69.70.

Cognizant Technology Solutions Company 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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