Trexquant Investment LP Takes Position in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Trexquant Investment LP has acquired a new stake in Cognizant Technology Solutions, purchasing 673,332 shares valued at approximately $51.5 million, making it the firm's 10th largest position.
• Wall Street analysts are optimistic, with five giving the stock a Buy rating and a consensus price target of $86.07, as recent upgrades have raised target prices to around $90.
• Cognizant recently announced a quarterly dividend of $0.31 per share, reflecting a 1.7% yield and a dividend payout ratio of 25.20%.

Trexquant Investment LP purchased a new position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 673,332 shares of the information technology service provider's stock, valued at approximately $51,510,000. Cognizant Technology Solutions makes up approximately 0.6% of Trexquant Investment LP's investment portfolio, making the stock its 10th largest position. Trexquant Investment LP owned approximately 0.14% of Cognizant Technology Solutions as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in CTSH. Park Square Financial Group LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at approximately $36,000. CoreCap Advisors LLC boosted its holdings in shares of Cognizant Technology Solutions by 21.5% in the 4th quarter. CoreCap Advisors LLC now owns 711 shares of the information technology service provider's stock valued at $55,000 after purchasing an additional 126 shares during the last quarter. Pinney & Scofield Inc. acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $55,000. Optiver Holding B.V. purchased a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $66,000. Finally, Zions Bancorporation National Association UT purchased a new position in shares of Cognizant Technology Solutions in the 1st quarter valued at $66,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ CTSH traded up $0.53 during midday trading on Monday, reaching $72.25. The company's stock had a trading volume of 2,592,387 shares, compared to its average volume of 3,966,282. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 0.04. The company has a 50 day moving average price of $74.28 and a 200 day moving average price of $76.91. Cognizant Technology Solutions Corporation has a one year low of $65.52 and a one year high of $90.82. The company has a market cap of $35.29 billion, a price-to-earnings ratio of 14.68, a price-to-earnings-growth ratio of 1.50 and a beta of 0.93.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its earnings results on Wednesday, July 30th. The information technology service provider reported $1.31 EPS for the quarter, topping analysts' consensus estimates of $1.26 by $0.05. Cognizant Technology Solutions had a net margin of 11.89% and a return on equity of 16.77%. The business had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.17 billion. During the same period in the previous year, the firm earned $1.17 EPS. The business's revenue for the quarter was up 8.1% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2025 guidance at 5.080-5.220 EPS. Q3 2025 guidance at EPS. On average, equities research analysts expect that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current year.

Cognizant Technology Solutions Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th were issued a dividend of $0.31 per share. The ex-dividend date was Monday, August 18th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.7%. Cognizant Technology Solutions's payout ratio is currently 25.20%.

Analysts Set New Price Targets

CTSH has been the topic of several analyst reports. Evercore ISI initiated coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They set an "outperform" rating and a $100.00 price target on the stock. Guggenheim raised shares of Cognizant Technology Solutions from a "neutral" rating to a "buy" rating and set a $90.00 price objective for the company in a research report on Friday, July 18th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cognizant Technology Solutions in a research report on Thursday, July 17th. They set a "hold" rating and a $80.00 price objective for the company. Wall Street Zen lowered shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, JPMorgan Chase & Co. reduced their target price on shares of Cognizant Technology Solutions from $101.00 to $89.00 and set an "overweight" rating for the company in a research note on Wednesday, August 20th. Five equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $86.07.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.