Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 1-Year Low – Here’s Why

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $59.31 and last traded at $61.3460, with a volume of 11050 shares traded. The stock had previously closed at $60.29.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. Argus upgraded shares of Cognizant Technology Solutions to a “hold” rating in a report on Tuesday, February 10th. BMO Capital Markets set a $83.00 price target on shares of Cognizant Technology Solutions in a research report on Thursday, February 12th. Weiss Ratings raised shares of Cognizant Technology Solutions from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, February 6th. Mizuho set a $87.00 price objective on shares of Cognizant Technology Solutions in a research note on Monday, February 9th. Finally, UBS Group set a $71.00 target price on Cognizant Technology Solutions in a research report on Friday, March 13th. Ten research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, Cognizant Technology Solutions currently has an average rating of “Hold” and a consensus price target of $88.78.

Cognizant Technology Solutions Stock Up 2.3%

The business’s fifty day moving average price is $72.72 and its two-hundred day moving average price is $73.62. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.14 and a current ratio of 2.14. The firm has a market capitalization of $29.49 billion, a P/E ratio of 13.56, a PEG ratio of 1.33 and a beta of 0.99.

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

Cognizant Technology Solutions Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Investors of record on Wednesday, February 18th were issued a $0.33 dividend. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. The ex-dividend date was Wednesday, February 18th. This represents a $1.32 annualized dividend and a yield of 2.1%. Cognizant Technology Solutions’s dividend payout ratio is currently 29.01%.

Insider Activity

In related news, Director Michael Patsalos-Fox sold 4,000 shares of Cognizant Technology Solutions stock in a transaction on Wednesday, December 24th. The stock was sold at an average price of $85.30, for a total value of $341,200.00. Following the completion of the transaction, the director directly owned 37,729 shares in the company, valued at approximately $3,218,283.70. This trade represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Surya Gummadi sold 1,728 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the sale, the insider owned 25,641 shares of the company’s stock, valued at $2,129,741.46. This trade represents a 6.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,809 shares of company stock valued at $1,423,037 in the last quarter. Insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently bought and sold shares of CTSH. Checchi Capital Advisers LLC grew its position in Cognizant Technology Solutions by 3.4% in the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after purchasing an additional 127 shares during the last quarter. Unison Advisors LLC increased its stake in Cognizant Technology Solutions by 0.5% during the fourth quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock valued at $2,498,000 after acquiring an additional 138 shares during the period. TD Waterhouse Canada Inc. increased its position in shares of Cognizant Technology Solutions by 7.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock worth $177,000 after purchasing an additional 143 shares in the last quarter. Security National Bank of SO Dak lifted its position in shares of Cognizant Technology Solutions by 0.6% during the third quarter. Security National Bank of SO Dak now owns 24,785 shares of the information technology service provider’s stock worth $1,662,000 after purchasing an additional 150 shares in the last quarter. Finally, Haven Private LLC boosted its stake in shares of Cognizant Technology Solutions by 1.9% in the 3rd quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider’s stock valued at $567,000 after purchasing an additional 157 shares during the last quarter. Hedge funds and other institutional investors 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.