Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 1-Year Low – Should You Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price hit a new 52-week low during trading on Wednesday . The stock traded as low as $58.87 and last traded at $59.67, with a volume of 1709396 shares changing hands. The stock had previously closed at $60.24.

Analyst Ratings Changes

A number of research firms recently commented on CTSH. Citigroup reiterated a “neutral” rating and issued a $86.00 target price (up from $75.00) on shares of Cognizant Technology Solutions in a research note on Thursday, January 22nd. Susquehanna reaffirmed a “positive” rating and issued a $98.00 price target on shares of Cognizant Technology Solutions in a report on Friday, January 23rd. Deutsche Bank Aktiengesellschaft upgraded shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating and set a $100.00 price objective for the company in a research note on Monday, January 26th. Guggenheim reissued a “buy” rating and set a $100.00 price objective (up from $95.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 28th. Finally, Argus raised Cognizant Technology Solutions to a “hold” rating in a research report on Tuesday, February 10th. Nine research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $88.78.

Cognizant Technology Solutions Price Performance

The firm has a market cap of $29.06 billion, a PE ratio of 13.35, a price-to-earnings-growth ratio of 1.30 and a beta of 0.99. The stock has a 50 day simple moving average of $69.80 and a two-hundred day simple moving average of $73.16. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.14 and a current ratio of 2.14.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 EPS 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 the consensus estimate of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The company’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Sell-side analysts expect that Cognizant Technology Solutions Corporation will post 4.98 earnings per share for the current year.

Cognizant Technology Solutions Increases Dividend

The company also recently disclosed 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 represents a $1.32 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, February 18th. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. Cognizant Technology Solutions’s dividend payout ratio is 29.01%.

Insider Activity at Cognizant Technology Solutions

In related news, Director Michael Patsalos-Fox sold 3,000 shares of the firm’s stock in a transaction on Monday, December 29th. The shares were sold at an average price of $85.17, for a total transaction of $255,510.00. Following the sale, the director owned 34,729 shares in the company, valued at approximately $2,957,868.93. This trade represents a 7.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Surya Gummadi sold 1,728 shares of Cognizant Technology Solutions stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.06, for a total transaction of $143,527.68. Following the completion of the transaction, the insider directly owned 25,641 shares of the company’s stock, valued at $2,129,741.46. The trade was a 6.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 6,859 shares of company stock valued at $575,460. Insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. Checchi Capital Advisers LLC raised its holdings in Cognizant Technology Solutions by 3.4% during the fourth quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after purchasing an additional 127 shares in the last quarter. Unison Advisors LLC lifted its position in Cognizant Technology Solutions by 0.5% in the fourth quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock valued at $2,498,000 after purchasing an additional 138 shares during the period. TD Waterhouse Canada Inc. boosted its holdings in Cognizant Technology Solutions by 7.2% in the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock valued at $177,000 after purchasing an additional 143 shares in the last quarter. Security National Bank of SO Dak increased its position in Cognizant Technology Solutions by 0.6% during the 2nd quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider’s stock worth $1,922,000 after purchasing an additional 150 shares during the period. Finally, Haven Private LLC increased its position in Cognizant Technology Solutions by 1.9% during the 3rd quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider’s stock worth $567,000 after purchasing an additional 157 shares during the period. 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.