Cognizant Technology Solutions Target of Unusually Large Options Trading (NASDAQ:CTSH)

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) was the recipient of unusually large options trading activity on Monday. Traders bought 10,574 put options on the stock. This is an increase of 162% compared to the average volume of 4,040 put options.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Pzena Investment Management LLC lifted its position in 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 valued at $1,243,096,000 after purchasing an additional 2,633,683 shares in the last quarter. Invesco Ltd. increased its stake in shares of Cognizant Technology Solutions by 8.6% in the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider’s stock worth $840,669,000 after purchasing an additional 987,395 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of Cognizant Technology Solutions by 7.6% during the 3rd quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider’s stock valued at $609,398,000 after buying an additional 639,801 shares in the last quarter. Norges Bank bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $690,959,000. Finally, GQG Partners LLC bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth about $673,651,000. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CTSH has been the subject of several analyst reports. Morgan Stanley set a $44.00 price target on shares of Cognizant Technology Solutions and gave the company an “equal weight” rating in a research report on Tuesday, June 23rd. Mizuho cut their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. Nomura upped their price target on shares of Cognizant Technology Solutions from $92.00 to $93.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Guggenheim dropped their target price on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set a “buy” rating for the company in a report on Thursday, April 30th. Finally, Wells Fargo & Company cut their target price on Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating on the stock in a research note on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $69.70.

Cognizant Technology Solutions Stock Down 2.7%

Cognizant Technology Solutions stock traded down $1.08 during mid-day trading on Monday, hitting $38.95. The company had a trading volume of 6,529,137 shares, compared to its average volume of 8,067,038. Cognizant Technology Solutions has a 12 month low of $38.90 and a 12 month high of $87.03. The stock’s 50 day moving average price is $51.46 and its two-hundred day moving average price is $65.30. 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 company has a market capitalization of $18.45 billion, a PE ratio of 8.47, a price-to-earnings-growth ratio of 0.84 and a beta of 0.81.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. During the same quarter in the previous year, the firm earned $1.23 EPS. Cognizant Technology Solutions’s 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. As a group, sell-side analysts anticipate that Cognizant Technology Solutions will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock buyback program on Monday, May 18th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information technology service provider to reacquire up to 9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Cognizant Technology Solutions Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.70%.

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.