HSBC Has Lowered Expectations for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target decreased by equities research analysts at HSBC from $80.00 to $68.00 in a research report issued on Wednesday,MarketScreener reports. The firm currently has a “buy” rating on the information technology service provider’s stock. HSBC’s price objective would suggest a potential upside of 68.76% from the company’s current price.

Several other analysts have also recently weighed in on CTSH. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, April 29th. Morgan Stanley set a $44.00 price target on Cognizant Technology Solutions and gave the company an “equal weight” rating in a research note on Tuesday, June 23rd. Citigroup lifted their price objective on Cognizant Technology Solutions from $51.00 to $55.00 and gave the stock a “neutral” rating in a research note on Monday, June 8th. Wells Fargo & Company decreased their target price on shares of Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating for the company in a research report on Thursday, April 30th. Finally, Mizuho lowered their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a report on Wednesday, May 6th. Eleven investment analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $69.17.

Cognizant Technology Solutions Trading Up 4.0%

Shares of NASDAQ:CTSH traded up $1.56 during midday trading on Wednesday, hitting $40.29. 1,269,874 shares of the stock were exchanged, compared to its average volume of 8,061,543. The stock has a market capitalization of $19.09 billion, a price-to-earnings ratio of 8.76, a P/E/G ratio of 0.82 and a beta of 0.81. 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 business’s 50-day moving average price is $50.57 and its 200 day moving average price is $64.69. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. During the same quarter last year, the business earned $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. Analysts predict that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock buyback program on Monday, May 18th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to purchase up to 9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

Institutional investors have recently made changes to their positions in the stock. Evolve Private Wealth LLC bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at $2,642,000. Temasek Holdings Private Ltd bought a new position in Cognizant Technology Solutions in the 3rd quarter worth about $55,217,000. OFI Invest Asset Management purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at about $8,421,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Cognizant Technology Solutions by 34.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider’s stock valued at $238,565,000 after acquiring an additional 734,337 shares in the last quarter. Finally, First Trust Advisors LP boosted its position 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 acquiring an additional 639,801 shares during the last quarter. Institutional investors and hedge funds 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.