Wall Street analysts forecast that Cognizant Technology Solutions Corp (NASDAQ:CTSH) will announce sales of $4.12 billion for the current quarter, Zacks reports. Ten analysts have issued estimates for Cognizant Technology Solutions’ earnings. The highest sales estimate is $4.13 billion and the lowest is $4.11 billion. Cognizant Technology Solutions reported sales of $3.83 billion in the same quarter last year, which would suggest a positive year over year growth rate of 7.6%. The business is scheduled to announce its next quarterly earnings report on Wednesday, February 6th.
On average, analysts expect that Cognizant Technology Solutions will report full-year sales of $16.11 billion for the current fiscal year, with estimates ranging from $16.10 billion to $16.12 billion. For the next year, analysts forecast that the firm will report sales of $17.38 billion, with estimates ranging from $17.07 billion to $17.60 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover Cognizant Technology Solutions.
Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Tuesday, October 30th. The information technology service provider reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.13 by $0.06. The business had revenue of $4.08 billion during the quarter, compared to the consensus estimate of $4.08 billion. Cognizant Technology Solutions had a return on equity of 22.54% and a net margin of 9.07%. The company’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.98 EPS.
Several equities analysts recently commented on CTSH shares. Bank of America downgraded Cognizant Technology Solutions from a “buy” rating to an “underperform” rating and dropped their price objective for the company from $91.00 to $81.00 in a research note on Tuesday, September 4th. HSBC raised shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Tuesday, September 18th. Nomura raised shares of Cognizant Technology Solutions from a “neutral” rating to a “buy” rating and set a $79.00 target price on the stock in a report on Wednesday, October 31st. Citigroup lowered their target price on shares of Cognizant Technology Solutions from $90.00 to $87.00 and set a “buy” rating on the stock in a report on Wednesday, October 31st. Finally, JPMorgan Chase & Co. cut shares of Cognizant Technology Solutions from an “overweight” rating to a “neutral” rating and set a $66.00 target price on the stock. in a report on Tuesday, August 14th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the company’s stock. Cognizant Technology Solutions currently has a consensus rating of “Buy” and a consensus price target of $83.95.
In other news, insider Sean Middleton sold 439 shares of the stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $76.28, for a total transaction of $33,486.92. Following the completion of the sale, the insider now directly owns 5,135 shares in the company, valued at $391,697.80. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Matthew W. Friedrich sold 2,881 shares of the stock in a transaction dated Wednesday, September 5th. The stock was sold at an average price of $75.17, for a total transaction of $216,564.77. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 12,773 shares of company stock valued at $929,282. Company insiders own 0.60% of the company’s stock.
Several institutional investors have recently bought and sold shares of CTSH. Legal & General Group Plc raised its stake in Cognizant Technology Solutions by 7.0% in the third quarter. Legal & General Group Plc now owns 2,985,622 shares of the information technology service provider’s stock worth $230,323,000 after buying an additional 194,852 shares in the last quarter. Buckingham Capital Management Inc. raised its stake in Cognizant Technology Solutions by 12.2% in the third quarter. Buckingham Capital Management Inc. now owns 19,664 shares of the information technology service provider’s stock worth $1,517,000 after buying an additional 2,143 shares in the last quarter. Nordea Investment Management AB raised its stake in Cognizant Technology Solutions by 12.1% in the third quarter. Nordea Investment Management AB now owns 8,862,865 shares of the information technology service provider’s stock worth $683,773,000 after buying an additional 954,566 shares in the last quarter. Neuberger Berman Group LLC raised its stake in Cognizant Technology Solutions by 13.7% in the third quarter. Neuberger Berman Group LLC now owns 2,704,065 shares of the information technology service provider’s stock worth $208,578,000 after buying an additional 324,794 shares in the last quarter. Finally, Kentucky Retirement Systems bought a new position in Cognizant Technology Solutions in the third quarter worth about $2,522,000. Institutional investors own 88.12% of the company’s stock.
Shares of NASDAQ CTSH traded up $1.06 during midday trading on Friday, reaching $68.67. The company’s stock had a trading volume of 4,757,297 shares, compared to its average volume of 4,388,811. Cognizant Technology Solutions has a 12-month low of $65.14 and a 12-month high of $85.10. The company has a market capitalization of $39.15 billion, a PE ratio of 19.45, a PEG ratio of 1.25 and a beta of 0.96. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 0.06.
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 30th. Shareholders of record on Tuesday, November 20th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, November 19th. This represents a $0.80 annualized dividend and a yield of 1.16%. Cognizant Technology Solutions’s payout ratio is 22.66%.
Cognizant Technology Solutions Company Profile
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services.
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