Cognizant Technology Solutions Co. (NASDAQ:CTSH) Receives $84.56 Consensus Target Price from Analysts

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) have earned an average rating of “Hold” from the eighteen ratings firms that are covering the stock, MarketBeat reports. Fourteen equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $84.56.

A number of equities research analysts have recently commented on CTSH shares. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $93.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, March 26th. Morgan Stanley dropped their target price on Cognizant Technology Solutions from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Wednesday, March 12th. Mizuho raised Cognizant Technology Solutions to a “hold” rating in a report on Wednesday, March 19th. Barclays increased their target price on Cognizant Technology Solutions from $95.00 to $103.00 and gave the company an “overweight” rating in a research report on Monday, February 10th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday, March 27th.

Cognizant Technology Solutions Trading Down 6.2 %

Shares of NASDAQ:CTSH opened at $68.74 on Wednesday. Cognizant Technology Solutions has a 52-week low of $63.79 and a 52-week high of $90.82. The business has a 50-day moving average price of $82.21 and a 200-day moving average price of $79.38. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.06. The stock has a market cap of $34.00 billion, a price-to-earnings ratio of 15.24, a PEG ratio of 2.11 and a beta of 1.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. Equities analysts predict that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions declared that its board has authorized a share buyback program on Tuesday, March 25th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the information technology service provider to buy up to 5.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, February 26th. Shareholders of record on Tuesday, February 18th were given a dividend of $0.31 per share. The ex-dividend date was Tuesday, February 18th. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.80%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 27.49%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Duncker Streett & Co. Inc. purchased a new position in Cognizant Technology Solutions during the 4th quarter valued at about $28,000. Trust Co. of Vermont increased its position in shares of Cognizant Technology Solutions by 188.4% during the fourth quarter. Trust Co. of Vermont now owns 447 shares of the information technology service provider’s stock worth $34,000 after acquiring an additional 292 shares during the period. SBI Securities Co. Ltd. purchased a new position in Cognizant Technology Solutions in the fourth quarter valued at $36,000. Park Square Financial Group LLC acquired a new position in Cognizant Technology Solutions during the 4th quarter worth $36,000. Finally, Spire Wealth Management raised its position in Cognizant Technology Solutions by 74.7% in the 4th quarter. Spire Wealth Management now owns 477 shares of the information technology service provider’s stock valued at $37,000 after purchasing an additional 204 shares in the last quarter. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

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.