NASDAQ:CTSH

Cognizant Technology Solutions - CTSH Stock Forecast, Price & News

$68.82

+0.10 (+0.15%)

(As of 08/8/2022 05:42 PM ET)

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Today's Range: $68.42
▼
$69.66
50-Day Range: $64.46
▼
$74.96
52-Week Range: $63.26
▼
$93.47

Volume: 2.19 million shs
Average Volume: 3.19 million shs
Market Capitalization: $35.87 billion

P/E Ratio: 15.97
Dividend Yield: 1.57%
Price Target: $84.79

Cognizant Technology Solutions MarketRank™ Forecast

Analyst Rating: Hold
2.20 Rating Score
Upside/Downside: 23.5% Upside
$84.79 Price Target
Short Interest: Healthy
1.25% of Float Sold Short
Dividend Strength: Moderate
Based on Four Factors
Sustainability: -0.75
Upright™ Environmental Score
News Sentiment: 0.65
Based on 18 Articles This Week
Insider Trading: Selling Shares
$876,280 Sold Last Quarter
Proj. Earnings Growth: 9.91%
From $4.54 to $4.99 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

3.01 out of 5 stars

Computer And Technology Sector

37th out of 833 stocks

Custom Computer Programming Services Industry

3rd out of 40 stocks

3.1

Analyst's Opinion

Consensus Rating
Cognizant Technology Solutions has received a consensus rating of Hold. The company's average rating score is 2.20, and is based on 3 buy ratings, 6 hold ratings, and 1 sell rating.
Price Target Upside/Downside
According to analysts' consensus price target of $84.79, Cognizant Technology Solutions has a forecasted upside of 23.5% from its current price of $68.65.
Amount of Analyst Coverage
Cognizant Technology Solutions has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

3.0

Short Interest

Percentage of Shares Shorted
1.25% of the float of Cognizant Technology Solutions has been sold short.
Short Interest Ratio / Days to Cover
Cognizant Technology Solutions has a short interest ratio ("days to cover") of 2, which is generally considered an acceptable ratio of short interest to trading volume.
Change versus previous month
Short interest in Cognizant Technology Solutions has recently increased by 15.25%, indicating that investor sentiment is decreasing significantly.

2.5

Dividend Strength

Dividend Yield
Cognizant Technology Solutions pays a meaningful dividend of 1.57%, higher than the bottom 25% of all stocks that pay dividends.
Dividend Growth
Cognizant Technology Solutions has only been increasing its dividend for 3 years.
Dividend Coverage
The dividend payout ratio of Cognizant Technology Solutions is 25.06%. This payout ratio is at a healthy, sustainable level, below 75%.
Dividend Sustainability
Based on earnings estimates, Cognizant Technology Solutions will have a dividend payout ratio of 21.64% next year. This indicates that Cognizant Technology Solutions will be able to sustain or increase its dividend.

4.1

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
Cognizant Technology Solutions has received a 59.20% net impact score from Upright. Cognizant seems to create the most significant positive value in categories "Jobs", "Taxes", and "Distributing knowledge". The positive contribution in the "Distributing knowledge" impact category is mostly driven by its "Language-learning environments", "Laboratory simulation software", "E-learning platforms for higher education", "Educational AR/VR software", "Assisted learning software", and "Educational robots" products. See details.
Environmental Sustainability
The Environmental Impact score for Cognizant Technology Solutions is -0.75.

3.7

News and Social Media Coverage

News Sentiment
Cognizant Technology Solutions has a news sentiment score of 0.65. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.32 average news sentiment score of Computer and Technology companies.
News Coverage This Week
MarketBeat has tracked 18 news articles for Cognizant Technology Solutions this week, compared to 4 articles on an average week.
Search Interest
13 people have searched for CTSH on MarketBeat in the last 30 days. This is an increase of 225% compared to the previous 30 days.
MarketBeat Follows
10 people have added Cognizant Technology Solutions to their MarketBeat watchlist in the last 30 days. This is an increase of 67% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Cognizant Technology Solutions insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $876,280.00 in company stock.
Percentage Held by Insiders
Only 0.34% of the stock of Cognizant Technology Solutions is held by insiders.
Percentage Held by Institutions
90.73% of the stock of Cognizant Technology Solutions is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

2.5

Earnings and Valuation

Earnings Growth
Earnings for Cognizant Technology Solutions are expected to grow by 9.91% in the coming year, from $4.54 to $4.99 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Cognizant Technology Solutions is 15.93, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.29.
Price to Earnings Ratio vs. Sector
The P/E ratio of Cognizant Technology Solutions is 15.93, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 352.39.
Price to Earnings Growth Ratio
Cognizant Technology Solutions has a PEG Ratio of 1.38. PEG Ratios above 1 indicate that a company could be overvalued.
Price to Book Value per Share Ratio
Cognizant Technology Solutions has a P/B Ratio of 3.01. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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About Cognizant Technology Solutions (NASDAQ:CTSH) Stock

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; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.

Cognizant Technology Solutions Stock Down 0.3 %

Shares of NASDAQ:CTSH traded down $0.20 during mid-day trading on Monday, hitting $68.52. 34,246 shares of the company traded hands, compared to its average volume of 3,201,609. The firm has a market cap of $35.71 billion, a P/E ratio of 15.94, a PEG ratio of 1.38 and a beta of 1.05. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.23 and a current ratio of 2.23. Cognizant Technology Solutions has a 52-week low of $63.26 and a 52-week high of $93.47. The firm's 50 day simple moving average is $68.76 and its 200 day simple moving average is $78.93.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Rating) last announced its earnings results on Wednesday, July 27th. The information technology service provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.09 by $0.05. The business had revenue of $4.91 billion for the quarter, compared to the consensus estimate of $4.92 billion. Cognizant Technology Solutions had a return on equity of 19.36% and a net margin of 11.74%. The company's revenue was up 7.0% on a year-over-year basis. During the same period last year, the business posted $0.99 EPS. On average, equities analysts anticipate that Cognizant Technology Solutions will post 4.54 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 30th. Investors of record on Friday, August 19th will be issued a dividend of $0.27 per share. The ex-dividend date is Thursday, August 18th. This represents a $1.08 annualized dividend and a dividend yield of 1.58%. Cognizant Technology Solutions's payout ratio is currently 25.06%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on CTSH. Citigroup reduced their target price on Cognizant Technology Solutions from $88.00 to $77.00 in a research report on Thursday, July 28th. UBS Group reduced their target price on Cognizant Technology Solutions from $89.00 to $76.00 and set a "neutral" rating on the stock in a research report on Thursday, July 28th. Susquehanna reduced their target price on Cognizant Technology Solutions from $100.00 to $98.00 in a research report on Thursday, July 28th. Robert W. Baird reduced their target price on Cognizant Technology Solutions from $94.00 to $84.00 in a research report on Friday, July 15th. Finally, Cowen downgraded Cognizant Technology Solutions to a "market perform" rating and cut their price objective for the stock from $86.00 to $75.00 in a report on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, Cognizant Technology Solutions has an average rating of "Hold" and a consensus price target of $84.79.

Insider Activity at Cognizant Technology Solutions

In other Cognizant Technology Solutions news, EVP Andrew J. Stafford sold 5,867 shares of the firm's stock in a transaction that occurred on Tuesday, May 10th. The stock was sold at an average price of $77.24, for a total transaction of $453,167.08. Following the completion of the sale, the executive vice president now owns 5,872 shares in the company, valued at approximately $453,553.28. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. In other Cognizant Technology Solutions news, EVP Andrew J. Stafford sold 5,867 shares of the firm's stock in a transaction that occurred on Tuesday, May 10th. The stock was sold at an average price of $77.24, for a total transaction of $453,167.08. Following the completion of the sale, the executive vice president now owns 5,872 shares in the company, valued at approximately $453,553.28. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Michael Patsalos-Fox sold 5,687 shares of the firm's stock in a transaction that occurred on Tuesday, May 17th. The shares were sold at an average price of $74.40, for a total value of $423,112.80. Following the sale, the director now owns 57,534 shares of the company's stock, valued at approximately $4,280,529.60. The disclosure for this sale can be found here. Company insiders own 0.34% of the company's stock.

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CTSH Stock News Headlines

August 4, 2022 | americanbankingnews.com

Analysts Set Cognizant Technology Solutions Co. (NASDAQ:CTSH) Target Price at $81.91

August 3, 2022 | finance.yahoo.com

AXA UK&I Selects Cognizant as a Technology Partner to Support part of its IT Operations

August 3, 2022 | americanbankingnews.com

William Blair Equities Analysts Raise Earnings Estimates for Cognizant Technology Solutions Co. (NASDAQ:CTSH)

August 3, 2022 | americanbankingnews.com

Q3 2022 EPS Estimates for Cognizant Technology Solutions Co. (NASDAQ:CTSH) Increased by Wedbush

August 2, 2022 | finance.yahoo.com

New Research Reveals Risk Factors to Business Success in a Post-Pandemic World

August 1, 2022 | americanbankingnews.com

Susquehanna Bancshares Lowers Cognizant Technology Solutions (NASDAQ:CTSH) Price Target to $98.00

August 1, 2022 | americanbankingnews.com

Cognizant Technology Solutions (NASDAQ:CTSH) Earns "Maintains" Rating from Royal Bank of Canada

August 1, 2022 | americanbankingnews.com

Citigroup Trims Cognizant Technology Solutions (NASDAQ:CTSH) Target Price to $77.00

August 1, 2022 | americanbankingnews.com

Cognizant Technology Solutions (NASDAQ:CTSH) Rating Lowered to Neutral at JPMorgan Chase & Co.

August 1, 2022 | americanbankingnews.com

Cognizant Technology Solutions (NASDAQ:CTSH) Earns "Downgrade" Rating from Cowen

July 31, 2022 | finance.yahoo.com

We Ran A Stock Scan For Earnings Growth And Cognizant Technology Solutions (NASDAQ:CTSH) Passed With Ease