Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 52-Week Low – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $58.34 and last traded at $58.7250, with a volume of 709485 shares. The stock had previously closed at $61.00.

Analysts Set New Price Targets

CTSH has been the subject of a number of research reports. Susquehanna reissued a “positive” rating and set a $98.00 target price on shares of Cognizant Technology Solutions in a research note on Friday, January 23rd. TD Cowen lowered their target price on Cognizant Technology Solutions from $85.00 to $71.00 and set a “hold” rating for the company in a research note on Friday, March 13th. Berenberg Bank set a $107.00 target price on Cognizant Technology Solutions and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Wells Fargo & Company reissued an “overweight” rating and set a $98.00 target price (up from $87.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 14th. Finally, UBS Group set a $71.00 target price on Cognizant Technology Solutions in a research note on Friday, March 13th. Nine equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $86.37.

Cognizant Technology Solutions Trading Down 4.0%

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 business has a 50-day simple moving average of $65.71 and a two-hundred day simple moving average of $72.68. The stock has a market cap of $28.01 billion, a price-to-earnings ratio of 12.87, a P/E/G ratio of 1.36 and a beta of 0.98.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results 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. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The firm had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5.31 billion. During the same quarter in the prior year, the firm posted $1.21 EPS. The business’s revenue was up 4.9% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, research analysts forecast that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Wednesday, February 18th were given a dividend of $0.33 per share. This is an increase 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 yield of 2.3%. Cognizant Technology Solutions’s payout ratio is currently 29.01%.

Insiders Place Their Bets

In other Cognizant Technology Solutions news, insider Surya Gummadi sold 1,728 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the completion of the transaction, the insider owned 25,641 shares of the company’s stock, valued at $2,129,741.46. This represents a 6.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in CTSH. JPL Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions during the 3rd quarter worth approximately $25,000. Lodestone Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Flagship Harbor Advisors LLC bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $28,000. Physician Wealth Advisors Inc. raised its stake in shares of Cognizant Technology Solutions by 165.1% during the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after purchasing an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $29,000. Institutional investors own 92.44% of the company’s stock.

About Cognizant Technology Solutions

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.