Cognizant Technology Solutions (NASDAQ:CTSH) Shares Up 6.7% – Here’s What Happened

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) rose 6.7% during mid-day trading on Monday . The company traded as high as $50.17 and last traded at $50.2920. Approximately 4,791,475 shares traded hands during trading, a decline of 27% from the average daily volume of 6,571,276 shares. The stock had previously closed at $47.13.

Analysts Set New Price Targets

CTSH has been the topic of a number of recent research reports. 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 report on Monday, January 26th. Mizuho dropped their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Evercore dropped their price target on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. BMO Capital Markets dropped their price target on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Finally, TD Cowen reaffirmed a “hold” rating and issued a $62.00 price target (down from $71.00) on shares of Cognizant Technology Solutions in a research report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $73.00.

Cognizant Technology Solutions Trading Up 7.9%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The firm has a 50 day simple moving average of $58.32 and a two-hundred day simple moving average of $70.50. The firm has a market capitalization of $24.09 billion, a P/E ratio of 11.06, a PEG ratio of 0.99 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm had revenue of $5.41 billion for the quarter, compared to analysts’ expectations of $5.41 billion. During the same quarter last year, the firm earned $1.23 EPS. The company’s quarterly revenue was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is 28.70%.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $690,959,000. GQG Partners LLC purchased a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $673,651,000. CIBC Bancorp USA Inc. purchased a new stake in Cognizant Technology Solutions during the third quarter valued at about $201,834,000. Cibc World Markets Corp purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth $234,671,000. Finally, Pzena Investment Management LLC lifted its position in shares of Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after acquiring an additional 2,633,683 shares in the last quarter. Hedge funds and other institutional investors own 92.44% of the company’s stock.

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.