Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 12-Month Low – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price reached a new 52-week low on Thursday . The company traded as low as $59.31 and last traded at $61.3460, with a volume of 11050 shares traded. The stock had previously closed at $60.29.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CTSH. Deutsche Bank Aktiengesellschaft upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating and set a $100.00 target price on the stock in a research note on Monday, January 26th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $98.00 price target (up from $87.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 14th. Weiss Ratings lowered shares of Cognizant Technology Solutions from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday. William Blair raised shares of Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research note on Friday, November 21st. Finally, Berenberg Bank set a $107.00 price objective on shares of Cognizant Technology Solutions and gave the stock a “buy” rating in a research report on Thursday, January 22nd. Nine equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $88.78.

Cognizant Technology Solutions Stock Up 0.8%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.14 and a current ratio of 2.14. The firm has a market capitalization of $29.68 billion, a price-to-earnings ratio of 13.64, a PEG ratio of 1.33 and a beta of 0.99. The firm has a fifty day moving average price of $71.77 and a 200 day moving average price of $73.47.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.03. The firm had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.Cognizant Technology Solutions’s quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, sell-side analysts expect that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th were paid a dividend of $0.33 per share. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.1%. Cognizant Technology Solutions’s dividend payout ratio is currently 29.01%.

Insider Transactions at Cognizant Technology Solutions

In related news, insider Surya Gummadi sold 1,728 shares of the firm’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the sale, the insider owned 25,641 shares in the company, valued at $2,129,741.46. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Michael Patsalos-Fox sold 4,000 shares of the business’s stock in a transaction dated Wednesday, December 24th. The stock was sold at an average price of $85.30, for a total transaction of $341,200.00. Following the sale, the director directly owned 37,729 shares in the company, valued at approximately $3,218,283.70. This represents a 9.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,859 shares of company stock valued at $1,172,110 in the last quarter. Insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds have recently bought and sold shares of the company. JPL Wealth Management LLC purchased a new stake in Cognizant Technology Solutions during the third quarter worth $25,000. Lodestone Wealth Management LLC acquired a new position in shares of Cognizant Technology Solutions during the 4th quarter worth $28,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter worth about $28,000. Physician Wealth Advisors Inc. grew its stake in Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after acquiring an additional 213 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $29,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.