Cognizant Technology Solutions (CTSH) – Analysts’ Recent Ratings Changes

Cognizant Technology Solutions (NASDAQ: CTSH) has recently received a number of price target changes and ratings updates:

  • 9/20/2019 – Cognizant Technology Solutions is now covered by analysts at Barclays PLC. They set an “underweight” rating and a $64.00 price target on the stock.
  • 9/16/2019 – Cognizant Technology Solutions was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 9/6/2019 – Cognizant Technology Solutions was given a new $76.00 price target on by analysts at Robert W. Baird. They now have a “buy” rating on the stock.
  • 9/5/2019 – Cognizant Technology Solutions was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. They now have a $66.00 price target on the stock. According to Zacks, “Cognizant’s domain expertise and ability to harness the ongoing digital transition are key catalysts. The company witnessed continued strength in cloud and digital engineering services, and increased demand for interactive, IoT and analytics solutions. Acquisitions have strengthened the company’s digital capabilities and clientele. Additionally, these acquisitions have helped it expand internationally. However, lackluster spending by large banks and stiff competition in the IT services market are concerns. Healthcare growth has also been affected by the ongoing industry-wide consolidation. Sluggishness in technology vertical is also expected to hurt top-line growth in the rest of 2019. Shares have underperformed the industry on a year-to-date basis.”
  • 8/2/2019 – Cognizant Technology Solutions was downgraded by analysts at UBS Group AG from a “neutral” rating to a “sell” rating. They now have a $60.00 price target on the stock, down previously from $62.00.
  • 7/23/2019 – Cognizant Technology Solutions was downgraded by analysts at HSBC Holdings plc from a “buy” rating to a “hold” rating. They now have a $70.00 price target on the stock, down previously from $72.00.
  • 7/23/2019 – Cognizant Technology Solutions was upgraded by analysts at TheStreet from a “c+” rating to a “b-” rating.

Shares of NASDAQ:CTSH traded down $1.68 on Friday, hitting $61.79. 367,663 shares of the company’s stock were exchanged, compared to its average volume of 2,595,439. Cognizant Technology Solutions Corp has a 12 month low of $56.73 and a 12 month high of $77.87. The stock has a market capitalization of $35.35 billion, a price-to-earnings ratio of 15.37, a price-to-earnings-growth ratio of 1.47 and a beta of 1.07. The business’s 50 day simple moving average is $62.47 and its two-hundred day simple moving average is $65.66. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.55 and a quick ratio of 2.55.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, July 31st. The information technology service provider reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.01. Cognizant Technology Solutions had a return on equity of 20.52% and a net margin of 12.61%. The business had revenue of $4.14 billion during the quarter, compared to the consensus estimate of $4.13 billion. During the same period last year, the company earned $1.05 earnings per share. The business’s revenue for the quarter was up 3.4% compared to the same quarter last year. Equities analysts forecast that Cognizant Technology Solutions Corp will post 3.96 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Friday, August 30th. Stockholders of record on Thursday, August 22nd were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Wednesday, August 21st. This represents a $0.80 annualized dividend and a dividend yield of 1.29%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 19.90%.

In other news, insider Malcolm Frank sold 678 shares of the firm’s stock in a transaction on Wednesday, September 4th. The stock was sold at an average price of $62.22, for a total transaction of $42,185.16. Following the transaction, the insider now owns 32,402 shares in the company, valued at $2,016,052.44. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, General Counsel Matthew W. Friedrich sold 452 shares of the firm’s stock in a transaction on Friday, September 13th. The shares were sold at an average price of $64.29, for a total value of $29,059.08. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 44,048 shares of company stock valued at $2,789,039. Corporate insiders own 0.56% of the company’s stock.

Several institutional investors have recently made changes to their positions in CTSH. Generation Investment Management LLP purchased a new position in shares of Cognizant Technology Solutions during the second quarter valued at $662,915,000. Price T Rowe Associates Inc. MD increased its stake in shares of Cognizant Technology Solutions by 354.2% during the second quarter. Price T Rowe Associates Inc. MD now owns 10,652,397 shares of the information technology service provider’s stock valued at $675,256,000 after buying an additional 8,307,253 shares during the period. FMR LLC increased its stake in shares of Cognizant Technology Solutions by 21.9% during the first quarter. FMR LLC now owns 15,767,608 shares of the information technology service provider’s stock valued at $1,142,362,000 after buying an additional 2,827,833 shares during the period. Nuveen Asset Management LLC increased its stake in shares of Cognizant Technology Solutions by 15,091.4% during the second quarter. Nuveen Asset Management LLC now owns 2,298,909 shares of the information technology service provider’s stock valued at $145,727,000 after buying an additional 2,283,776 shares during the period. Finally, BlackRock Inc. increased its stake in shares of Cognizant Technology Solutions by 4.7% during the first quarter. BlackRock Inc. now owns 47,153,467 shares of the information technology service provider’s stock valued at $3,416,269,000 after buying an additional 2,129,464 shares during the period. Hedge funds and other institutional investors own 91.45% of the company’s stock.

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 analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services.

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