Temasek Holdings Private Ltd Sells 148,243 Shares of Cognizant Technology Solutions Corporation $CTSH

Key Points

• Temasek Holdings cut its stake in Cognizant Technology Solutions by 18% in the fourth quarter, selling 148,243 shares and leaving it with 675,035 shares worth about $56.0 million.
• Wall Street sentiment is mixed: analysts have issued 11 Buy ratings and 12 Hold ratings, with a consensus rating of Hold and an average price target of $73.50.
• Cognizant reported quarterly EPS of $1.40, beating estimates, and revenue of $5.41 billion, while also announcing a $2 billion share buyback and a quarterly dividend of $0.33 per share.

Temasek Holdings Private Ltd reduced its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 18.0% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 675,035 shares of the information technology service provider's stock after selling 148,243 shares during the quarter. Temasek Holdings Private Ltd owned 0.14% of Cognizant Technology Solutions worth $56,028,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in CTSH. Brighton Jones LLC purchased a new position in shares of Cognizant Technology Solutions during the 4th quarter valued at about $214,000. Geneos Wealth Management Inc. lifted its position in shares of Cognizant Technology Solutions by 118.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider's stock valued at $44,000 after buying an additional 309 shares in the last quarter. Acadian Asset Management LLC purchased a new position in shares of Cognizant Technology Solutions during the 1st quarter valued at about $142,000. Cresset Asset Management LLC lifted its position in shares of Cognizant Technology Solutions by 11.4% during the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider's stock valued at $715,000 after buying an additional 935 shares in the last quarter. Finally, Jump Financial LLC lifted its position in shares of Cognizant Technology Solutions by 231.4% during the 2nd quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider's stock valued at $2,315,000 after buying an additional 20,716 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Berenberg Bank lowered their price objective on Cognizant Technology Solutions from $107.00 to $81.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Wedbush raised Cognizant Technology Solutions from a "neutral" rating to an "outperform" rating and lifted their price objective for the company from $56.00 to $70.00 in a research report on Monday, June 8th. Guggenheim lowered their price objective on Cognizant Technology Solutions from $85.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Mizuho lowered their price objective on Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Finally, Weiss Ratings cut Cognizant Technology Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 13th. Eleven research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $73.50.

Cognizant Technology Solutions Stock Down 2.6%

Shares of CTSH opened at $50.82 on Tuesday. The stock has a market capitalization of $24.08 billion, a price-to-earnings ratio of 11.05, a price-to-earnings-growth ratio of 1.10 and a beta of 0.81. Cognizant Technology Solutions Corporation has a 1 year low of $45.48 and a 1 year high of $87.03. The business's 50 day simple moving average is $54.55 and its 200-day simple moving average is $67.53. 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 issued 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. The business had revenue of $5.41 billion for 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 company's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities analysts expect that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

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 annualized dividend and a dividend yield of 2.6%. Cognizant Technology Solutions's payout ratio is currently 28.70%.

Cognizant Technology Solutions declared that its Board of Directors has approved a stock buyback plan on Monday, May 18th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to buy up to 9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership 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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