Motley Fool Asset Management LLC Increases Holdings in Cognizant Technology Solutions Corporation $CTSH

Motley Fool Asset Management LLC grew its holdings in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 29.2% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 50,694 shares of the information technology service provider’s stock after buying an additional 11,470 shares during the period. Motley Fool Asset Management LLC’s holdings in Cognizant Technology Solutions were worth $4,208,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at about $690,959,000. CIBC Bancorp USA Inc. purchased a new stake in shares of Cognizant Technology Solutions in the 3rd quarter valued at about $201,834,000. Voloridge Investment Management LLC lifted its holdings in shares of Cognizant Technology Solutions by 801.4% in the 3rd quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider’s stock valued at $141,134,000 after purchasing an additional 1,870,834 shares during the last quarter. Hotchkis & Wiley Capital Management LLC lifted its holdings in shares of Cognizant Technology Solutions by 144.3% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 2,631,890 shares of the information technology service provider’s stock valued at $176,521,000 after purchasing an additional 1,554,648 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at about $84,574,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. The Goldman Sachs Group set a $75.00 target price on Cognizant Technology Solutions in a report on Wednesday, April 29th. Dbs Bank reduced their target price on Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. Nomura boosted their target price on Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Susquehanna reduced their price objective on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a research note on Friday, May 1st. Finally, Evercore reduced their price objective on Cognizant Technology Solutions from $100.00 to $70.00 in a research note on Thursday, April 30th. Eleven analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $73.50.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH opened at $51.81 on Thursday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The business’s 50 day moving average is $55.17 and its two-hundred day moving average is $68.05. Cognizant Technology Solutions Corporation has a 12-month low of $45.48 and a 12-month high of $87.03. The stock has a market capitalization of $24.55 billion, a price-to-earnings ratio of 11.26, a PEG ratio of 1.11 and a beta of 0.81.

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

Cognizant Technology Solutions Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were issued a $0.33 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.5%. Cognizant Technology Solutions’s dividend payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its board has authorized a share repurchase program on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information technology service provider to buy up to 9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Cognizant Technology Solutions 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.