Cognizant Technology Solutions (CTSH) Upgraded by Zacks Investment Research to Buy

Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $87.00 target price on the information technology service provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 9.00% from the stock’s current price.

According to Zacks, “Cognizant reported impressive fourth-quarter 2017 results. Both earnings and revenues increased on a year-over-year basis. Growth can be attributed to its significant exposure to the fast-growing verticals like financial services and healthcare. Higher demand from payer and top-tier consulting clients in the healthcare segment will help to sustain the growth momentum. Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition. The company is also significantly gaining from accretive acquisitions and share repurchase program. In the past one-year, Cognizant has outperformed the industry it belongs to. However, the company faces significant geographic, domain and customer concentration risks which can negatively impact its business. Besides, stiff competition in the IT services market remains a concern.”

A number of other research analysts also recently commented on CTSH. Robert W. Baird increased their target price on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the company an “outperform” rating in a research report on Thursday, October 19th. BidaskClub downgraded shares of Cognizant Technology Solutions from a “hold” rating to a “sell” rating in a research report on Friday, December 29th. SunTrust Banks reaffirmed a “buy” rating and issued a $85.00 target price on shares of Cognizant Technology Solutions in a research report on Friday, November 3rd. Morgan Stanley increased their target price on shares of Cognizant Technology Solutions from $77.00 to $84.00 and gave the company an “equal weight” rating in a research report on Monday, February 5th. Finally, Credit Suisse Group reaffirmed an “outperform” rating and issued a $89.00 target price (up from $80.00) on shares of Cognizant Technology Solutions in a research report on Thursday, November 2nd. Four equities research analysts have rated the stock with a hold rating, twenty-three have given a buy rating and two have given a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $84.32.

Shares of Cognizant Technology Solutions (NASDAQ CTSH) opened at $79.82 on Tuesday. Cognizant Technology Solutions has a fifty-two week low of $57.00 and a fifty-two week high of $80.13. The firm has a market cap of $46,057.17, a price-to-earnings ratio of 22.00, a PEG ratio of 1.47 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.21 and a quick ratio of 3.29.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 7th. The information technology service provider reported $1.03 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.88 by $0.15. Cognizant Technology Solutions had a net margin of 10.15% and a return on equity of 19.94%. The business had revenue of $3.83 billion for the quarter, compared to analyst estimates of $3.82 billion. During the same period last year, the business earned $0.87 EPS. The company’s revenue was up 10.6% on a year-over-year basis. sell-side analysts anticipate that Cognizant Technology Solutions will post 4.21 earnings per share for the current fiscal year.

In other Cognizant Technology Solutions news, CFO Karen Mcloughlin sold 9,482 shares of the firm’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $72.24, for a total transaction of $684,979.68. Following the transaction, the chief financial officer now directly owns 52,200 shares of the company’s stock, valued at approximately $3,770,928. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Francisco Dsouza sold 482,000 shares of Cognizant Technology Solutions stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $72.04, for a total transaction of $34,723,280.00. Following the completion of the sale, the chief executive officer now directly owns 621,643 shares in the company, valued at approximately $44,783,161.72. The disclosure for this sale can be found here. Insiders have sold a total of 1,111,296 shares of company stock worth $82,190,888 over the last three months. 1.08% of the stock is currently owned by insiders.

Several large investors have recently modified their holdings of CTSH. Harding Loevner LP boosted its holdings in shares of Cognizant Technology Solutions by 2,085,162.4% in the third quarter. Harding Loevner LP now owns 3,544,946 shares of the information technology service provider’s stock valued at $142,254,000 after acquiring an additional 3,544,776 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Cognizant Technology Solutions by 296.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,422,593 shares of the information technology service provider’s stock valued at $314,093,000 after acquiring an additional 3,307,799 shares in the last quarter. Winslow Capital Management LLC purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at about $217,524,000. APG Asset Management N.V. boosted its holdings in shares of Cognizant Technology Solutions by 241.2% in the fourth quarter. APG Asset Management N.V. now owns 3,580,820 shares of the information technology service provider’s stock valued at $211,784,000 after acquiring an additional 2,531,494 shares in the last quarter. Finally, Genesis Asset Managers LLP boosted its holdings in shares of Cognizant Technology Solutions by 92.3% in the fourth quarter. Genesis Asset Managers LLP now owns 3,738,507 shares of the information technology service provider’s stock valued at $265,509,000 after acquiring an additional 1,794,164 shares in the last quarter. 86.87% of the stock is currently owned by institutional investors and hedge funds.

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Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services.

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