Cognizant Technology Solutions Co. (NASDAQ:CTSH) Declares Quarterly Dividend of $0.30

Cognizant Technology Solutions Co. (NASDAQ:CTSH - Get Free Report) declared a quarterly dividend on Thursday, May 2nd, Wall Street Journal reports. Stockholders of record on Monday, May 20th will be paid a dividend of 0.30 per share by the information technology service provider on Wednesday, May 29th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.81%. The ex-dividend date of this dividend is Friday, May 17th.

Cognizant Technology Solutions has increased its dividend payment by an average of 9.7% annually over the last three years and has increased its dividend annually for the last 5 consecutive years. Cognizant Technology Solutions has a payout ratio of 24.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $4.92 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 24.4%.

Cognizant Technology Solutions Stock Up 1.4 %

Shares of CTSH stock traded up $0.90 during trading on Thursday, hitting $66.27. 8,585,253 shares of the company were exchanged, compared to its average volume of 4,343,017. The business's 50-day simple moving average is $72.58 and its 200 day simple moving average is $72.47. Cognizant Technology Solutions has a twelve month low of $58.81 and a twelve month high of $80.09. The firm has a market capitalization of $32.99 billion, a price-to-earnings ratio of 15.78, a P/E/G ratio of 1.50 and a beta of 1.08. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.25 and a current ratio of 2.25.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its earnings results on Wednesday, May 1st. The information technology service provider reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.01. Cognizant Technology Solutions had a net margin of 10.98% and a return on equity of 17.83%. The company had revenue of $4.76 billion during the quarter, compared to analyst estimates of $4.72 billion. During the same quarter last year, the business posted $1.11 EPS. The company's revenue for the quarter was down 1.1% on a year-over-year basis. As a group, analysts forecast that Cognizant Technology Solutions will post 4.59 EPS for the current fiscal year.

Insider Buying and Selling

In other Cognizant Technology Solutions news, EVP Kathryn Diaz sold 900 shares of the firm's stock in a transaction that occurred on Tuesday, March 12th. The stock was sold at an average price of $77.06, for a total value of $69,354.00. Following the sale, the executive vice president now owns 8,312 shares of the company's stock, valued at approximately $640,522.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 0.27% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on CTSH shares. Citigroup lowered their target price on Cognizant Technology Solutions from $90.00 to $82.00 and set a "buy" rating on the stock in a research note on Monday, April 22nd. BMO Capital Markets lowered their price target on Cognizant Technology Solutions from $85.00 to $77.00 and set a "market perform" rating for the company in a research note on Tuesday. Societe Generale reaffirmed a "sell" rating and set a $67.00 price objective on shares of Cognizant Technology Solutions in a research report on Friday, January 5th. Wedbush reiterated an "outperform" rating and issued a $85.00 target price on shares of Cognizant Technology Solutions in a research note on Thursday. Finally, StockNews.com lowered shares of Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, Cognizant Technology Solutions presently has an average rating of "Hold" and a consensus target price of $75.63.

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.