Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 1-Year Low – Should You Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price hit a new 52-week low during trading on Thursday . The company traded as low as $65.00 and last traded at $66.3020, with a volume of 7010366 shares changing hands. The stock had previously closed at $70.91.

Wall Street Analyst Weigh In

Several research analysts have issued reports on CTSH shares. Mizuho set a $87.00 price objective on shares of Cognizant Technology Solutions in a research report on Monday. William Blair raised Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a report on Friday, November 21st. BMO Capital Markets set a $83.00 price objective on Cognizant Technology Solutions in a research note on Thursday. Citigroup reaffirmed a “neutral” rating and set a $86.00 price objective (up from $75.00) on shares of Cognizant Technology Solutions in a research report on Thursday, January 22nd. Finally, Berenberg Bank set a $107.00 target price on Cognizant Technology Solutions and gave the company a “buy” rating in a report on Thursday, January 22nd. Ten research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, Cognizant Technology Solutions presently has an average rating of “Hold” and a consensus price target of $90.17.

Cognizant Technology Solutions Stock Performance

The stock has a 50 day moving average of $82.61 and a two-hundred day moving average of $74.93. The stock has a market capitalization of $31.77 billion, a PE ratio of 14.47, a P/E/G ratio of 1.62 and a beta of 0.95. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.34 and a quick ratio of 2.36.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.03. The firm had revenue of $5.33 billion during the quarter, compared to analysts’ expectations of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.Cognizant Technology Solutions’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Research analysts expect that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Wednesday, February 18th will be issued a dividend of $0.33 per share. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Wednesday, February 18th. Cognizant Technology Solutions’s payout ratio is presently 29.01%.

Insider Activity at Cognizant Technology Solutions

In related news, CEO Ravi Kumar Singisetti sold 3,125 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $80.01, for a total value of $250,031.25. Following the completion of the transaction, the chief executive officer directly owned 75,454 shares of the company’s stock, valued at $6,037,074.54. This trade represents a 3.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Michael Patsalos-Fox sold 7,000 shares of Cognizant Technology Solutions stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $83.52, for a total value of $584,640.00. Following the transaction, the director directly owned 47,729 shares of the company’s stock, valued at approximately $3,986,326.08. This represents a 12.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 29,434 shares of company stock valued at $2,460,809. 0.32% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of the company. JPL Wealth Management LLC acquired a new position in Cognizant Technology Solutions in the third quarter valued at $25,000. Lodestone Wealth Management LLC purchased a new stake in Cognizant Technology Solutions during the fourth quarter worth approximately $28,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth $28,000. Physician Wealth Advisors Inc. raised its stake in shares of Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after acquiring an additional 213 shares during the period. Finally, NewSquare Capital LLC raised its stake in shares of Cognizant Technology Solutions by 71.8% in the 2nd quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider’s stock valued at $29,000 after acquiring an additional 153 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

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.