Guggenheim Issues Pessimistic Forecast for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Key Points

• Guggenheim cut its price target on Cognizant to $85 (from $100) but kept a "buy" rating, which the firm says implies roughly a 41.6% upside from the stock's current price (~$60).
• The analyst landscape is mixed: nine firms rate CTSH a Buy and 13 rate it a Hold, giving a MarketBeat consensus rating of "Hold" and a consensus target of about $84.68.
• Cognizant slightly beat quarterly EPS and revenue estimates (EPS $1.35 vs. $1.32; revenue $5.33B), set FY2026 EPS guidance of $5.56–$5.70 (in line with analyst expectations), and is trading below its 50- and 200-day moving averages around $60.05.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its target price cut by investment analysts at Guggenheim from $100.00 to $85.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the information technology service provider's stock. Guggenheim's price objective indicates a potential upside of 41.55% from the company's current price.

A number of other brokerages have also commented on CTSH. Berenberg Bank set a $107.00 price objective on Cognizant Technology Solutions and gave the stock a "buy" rating in a report on Thursday, January 22nd. Citigroup decreased their price objective on Cognizant Technology Solutions from $86.00 to $68.00 and set a "neutral" rating for the company in a report on Tuesday, April 7th. Weiss Ratings lowered Cognizant Technology Solutions from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, March 19th. UBS Group decreased their price objective on Cognizant Technology Solutions from $67.00 to $64.00 and set a "neutral" rating for the company in a report on Monday, April 13th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $98.00 price objective (up from $87.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 14th. Nine analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, Cognizant Technology Solutions currently has a consensus rating of "Hold" and a consensus target price of $84.68.

Cognizant Technology Solutions Stock Down 0.7%

CTSH traded down $0.40 during midday trading on Wednesday, reaching $60.05. 602,682 shares of the company were exchanged, compared to its average volume of 6,319,623. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.14 and a current ratio of 2.14. The company's fifty day moving average price is $62.49 and its 200 day moving average price is $72.26. The company has a market cap of $28.72 billion, a price-to-earnings ratio of 13.17, a price-to-earnings-growth ratio of 1.31 and a beta of 0.98. Cognizant Technology Solutions has a one year low of $57.39 and a one year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, topping analysts' consensus estimates of $1.32 by $0.03. The firm had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The company's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.21 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, analysts expect that Cognizant Technology Solutions will post 5.65 EPS for the current year.

Insider Activity

In other Cognizant Technology Solutions news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the sale, the insider owned 25,641 shares in the company, valued at $2,129,741.46. This represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.32% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cognizant Technology Solutions

Institutional investors have recently made changes to their positions in the stock. Flagship Harbor Advisors LLC purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth $28,000. Physician Wealth Advisors Inc. lifted its position in shares of Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock worth $28,000 after acquiring an additional 213 shares in the last quarter. Lodestone Wealth Management LLC purchased a new stake 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 in the fourth quarter worth $29,000. Finally, Towne Trust Company N.A raised its position in shares of Cognizant Technology Solutions by 85.0% in the fourth quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider's stock worth $31,000 after buying an additional 170 shares in the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.

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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