Citigroup Lowers Cognizant Technology Solutions (CTSH) Price Target to $87.00

Cognizant Technology Solutions (NASDAQ:CTSH) had its price objective trimmed by Citigroup from $90.00 to $87.00 in a research report report published on Wednesday. The brokerage currently has a buy rating on the information technology service provider’s stock.

Other analysts have also recently issued reports about the stock. BidaskClub cut shares of Cognizant Technology Solutions from a buy rating to a hold rating in a report on Friday, July 27th. BMO Capital Markets reissued a buy rating and issued a $85.00 price objective on shares of Cognizant Technology Solutions in a research note on Thursday, August 2nd. Wolfe Research started coverage on shares of Cognizant Technology Solutions in a research note on Tuesday, July 17th. They issued a market perform rating for the company. HSBC raised shares of Cognizant Technology Solutions from a hold rating to a buy rating in a research note on Tuesday, September 18th. Finally, KeyCorp reduced their price objective on shares of Cognizant Technology Solutions from $91.00 to $89.00 and set an overweight rating for the company in a research note on Friday, August 3rd. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, eleven have assigned a buy rating and two have assigned a strong buy rating to the stock. Cognizant Technology Solutions presently has an average rating of Buy and a consensus target price of $84.42.

CTSH stock traded up $0.72 during midday trading on Wednesday, reaching $69.50. 3,703,622 shares of the company’s stock traded hands, compared to its average volume of 4,056,201. Cognizant Technology Solutions has a 52-week low of $65.14 and a 52-week high of $85.10. The stock has a market cap of $40.05 billion, a P/E ratio of 19.69, a P/E/G ratio of 1.27 and a beta of 0.96. The company has a current ratio of 3.24, a quick ratio of 3.27 and a debt-to-equity ratio of 0.06.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Tuesday, October 30th. The information technology service provider reported $1.19 EPS for the quarter, beating the Zacks’ consensus estimate of $1.13 by $0.06. Cognizant Technology Solutions had a net margin of 9.07% and a return on equity of 22.54%. The business had revenue of $4.08 billion during the quarter, compared to analysts’ expectations of $4.08 billion. During the same period in the prior year, the company earned $0.98 earnings per share. The firm’s revenue was up 8.3% on a year-over-year basis. As a group, equities analysts forecast that Cognizant Technology Solutions will post 4.16 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, November 30th. Investors of record on Tuesday, November 20th will be given a dividend of $0.20 per share. The ex-dividend date is Monday, November 19th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.15%. Cognizant Technology Solutions’s dividend payout ratio is 22.66%.

In related news, EVP Allen Shaheen sold 352 shares of the company’s stock in a transaction on Tuesday, August 21st. The shares were sold at an average price of $74.89, for a total transaction of $26,361.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, President Rajeev Mehta sold 22,239 shares of the company’s stock in a transaction on Friday, August 10th. The stock was sold at an average price of $75.86, for a total transaction of $1,687,050.54. Following the transaction, the president now owns 352 shares of the company’s stock, valued at approximately $26,702.72. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 48,288 shares of company stock valued at $3,694,551. 0.60% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of CTSH. BlackRock Inc. boosted its position in shares of Cognizant Technology Solutions by 6.9% during the second quarter. BlackRock Inc. now owns 42,845,471 shares of the information technology service provider’s stock worth $3,384,363,000 after acquiring an additional 2,775,975 shares during the last quarter. Voya Investment Management LLC boosted its position in shares of Cognizant Technology Solutions by 909.3% during the second quarter. Voya Investment Management LLC now owns 2,163,755 shares of the information technology service provider’s stock worth $170,915,000 after acquiring an additional 1,949,375 shares during the last quarter. Flossbach Von Storch AG boosted its position in shares of Cognizant Technology Solutions by 225.1% during the second quarter. Flossbach Von Storch AG now owns 1,464,966 shares of the information technology service provider’s stock worth $115,718,000 after acquiring an additional 1,014,395 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of Cognizant Technology Solutions by 4.8% during the second quarter. Bank of New York Mellon Corp now owns 18,273,087 shares of the information technology service provider’s stock worth $1,443,390,000 after acquiring an additional 836,521 shares during the last quarter. Finally, Coronation Fund Managers Ltd. boosted its position in shares of Cognizant Technology Solutions by 68.8% during the third quarter. Coronation Fund Managers Ltd. now owns 1,707,758 shares of the information technology service provider’s stock worth $131,754,000 after acquiring an additional 695,766 shares during the last quarter. Hedge funds and other institutional investors own 88.04% of the company’s stock.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services.

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