Wellington Management Group LLP Cuts Holdings in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Wellington Management cut its Cognizant Technology Solutions stake by 95.6% in the second quarter, selling 4.64 million shares and retaining 211,764 shares valued at approximately $8.2 million.
• Cognizant reported quarterly revenue of $5.48 billion, up 4.5% year over year, but earnings of $1.37 per share narrowly missed estimates. Analysts maintain a consensus “Hold” rating with a $63 price target.
• The company pays a quarterly dividend of $0.33, yielding about 2.2%, and has authorized a $2 billion stock buyback covering up to 9% of outstanding shares.

Wellington Management Group LLP lowered its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 95.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 211,764 shares of the information technology service provider's stock after selling 4,639,888 shares during the period. Wellington Management Group LLP's holdings in Cognizant Technology Solutions were worth $8,202,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also bought and sold shares of CTSH. JPL Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions during the 3rd quarter worth $25,000. Prosperity Bancshares Inc purchased a new position in Cognizant Technology Solutions in the fourth quarter valued at about $29,000. Signature Equity Partners LLC raised its holdings in Cognizant Technology Solutions by 102.4% in the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider's stock worth $37,000 after purchasing an additional 303 shares in the last quarter. Reflection Asset Management purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at about $40,000. Finally, MV Capital Management Inc. bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at about $42,000. Institutional investors own 92.44% of the company's stock.

Cognizant Technology Solutions Stock Performance

Shares of Cognizant Technology Solutions stock opened at $59.92 on Wednesday. The company has a 50 day moving average price of $53.39 and a 200 day moving average price of $54.93. The firm has a market capitalization of $26.99 billion, a P/E ratio of 12.89, a PEG ratio of 1.16 and a beta of 0.83. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. Cognizant Technology Solutions Corporation has a 52 week low of $37.08 and a 52 week high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.01). The company had revenue of $5.48 billion for the quarter, compared to analysts' expectations of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The firm's revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. Sell-side analysts expect that Cognizant Technology Solutions Corporation will post 5.71 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th were given a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Tuesday, August 18th. Cognizant Technology Solutions's dividend payout ratio is presently 28.39%.

Cognizant Technology Solutions announced that its board has authorized a stock buyback plan on Monday, May 18th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on shares of Cognizant Technology Solutions in a research report on Friday, July 10th. HSBC lowered their target price on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. Berenberg Bank set a $59.00 price target on shares of Cognizant Technology Solutions and gave the stock a "hold" rating in a report on Wednesday, June 17th. Susquehanna set a $82.00 price target on Cognizant Technology Solutions and gave the stock a "positive" rating in a research report on Thursday, July 30th. Finally, Guggenheim reiterated a "buy" rating and set a $65.00 price objective (down from $80.00) on shares of Cognizant Technology Solutions in a report on Monday, July 27th. Ten research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $63.00.

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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