Cognizant Technology Solutions Co. (NASDAQ:CTSH) Receives Average Rating of “Hold” from Brokerages

Cognizant Technology Solutions Co. (NASDAQ:CTSH) has been given an average recommendation of “Hold” by the twenty-one brokerages that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, seventeen have given a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $78.83.

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. lifted their target price on Cognizant Technology Solutions from $82.00 to $89.00 and gave the company a “neutral” rating in a research report on Friday, September 6th. Mizuho boosted their target price on Cognizant Technology Solutions from $83.00 to $84.00 and gave the stock a “neutral” rating in a research note on Friday, November 1st. Barclays lifted their target price on Cognizant Technology Solutions from $75.00 to $80.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 23rd. Bank of America upgraded shares of Cognizant Technology Solutions from an “underperform” rating to a “neutral” rating and boosted their target price for the company from $73.00 to $75.00 in a research report on Wednesday, August 7th. Finally, Royal Bank of Canada upped their price objective on shares of Cognizant Technology Solutions from $81.00 to $82.00 and gave the stock a “sector perform” rating in a research report on Wednesday, August 28th.

Cognizant Technology Solutions Stock Down 1.3 %

Shares of CTSH opened at $80.31 on Friday. The company has a market capitalization of $39.82 billion, a PE ratio of 17.77, a price-to-earnings-growth ratio of 2.19 and a beta of 1.05. The business’s 50 day moving average is $76.47 and its 200 day moving average is $72.36. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.08. Cognizant Technology Solutions has a 12-month low of $63.79 and a 12-month high of $81.75.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, October 30th. The information technology service provider reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $1.15 by $0.10. Cognizant Technology Solutions had a return on equity of 17.08% and a net margin of 11.60%. The firm had revenue of $5.04 billion during the quarter, compared to analysts’ expectations of $4.99 billion. During the same quarter in the previous year, the business earned $1.16 EPS. The company’s quarterly revenue was up 3.0% on a year-over-year basis. Research analysts expect that Cognizant Technology Solutions will post 4.66 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 27th. Stockholders of record on Tuesday, November 19th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.49%. The ex-dividend date of this dividend is Tuesday, November 19th. Cognizant Technology Solutions’s payout ratio is currently 26.55%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CTSH. BNP PARIBAS ASSET MANAGEMENT Holding S.A. boosted its stake in Cognizant Technology Solutions by 26.1% during the 3rd quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 840,359 shares of the information technology service provider’s stock valued at $64,859,000 after acquiring an additional 174,020 shares during the last quarter. Citizens Financial Group Inc. RI acquired a new stake in shares of Cognizant Technology Solutions in the 3rd quarter worth about $206,000. Moors & Cabot Inc. acquired a new stake in shares of Cognizant Technology Solutions in the 3rd quarter worth about $413,000. Grandfield & Dodd LLC increased its stake in Cognizant Technology Solutions by 1.5% during the 3rd quarter. Grandfield & Dodd LLC now owns 182,834 shares of the information technology service provider’s stock valued at $14,111,000 after buying an additional 2,654 shares during the period. Finally, First Horizon Advisors Inc. increased its stake in Cognizant Technology Solutions by 5.0% during the 3rd quarter. First Horizon Advisors Inc. now owns 5,638 shares of the information technology service provider’s stock valued at $435,000 after buying an additional 269 shares during the period. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.