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

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $58.87 and last traded at $59.67, with a volume of 1709396 shares changing hands. The stock had previously closed at $60.24.

Wall Street Analysts Forecast Growth

CTSH has been the subject of several research analyst reports. Susquehanna reissued a “positive” rating and issued a $98.00 price objective on shares of Cognizant Technology Solutions in a report on Friday, January 23rd. Wells Fargo & Company reissued an “overweight” rating and set a $98.00 price objective (up from $87.00) on shares of Cognizant Technology Solutions in a research report on Wednesday, January 14th. TD Cowen reduced their target price on shares of Cognizant Technology Solutions from $85.00 to $71.00 and set a “hold” rating for the company in a report on Friday, March 13th. Mizuho set a $87.00 price target on Cognizant Technology Solutions in a report on Monday, February 9th. Finally, Royal Bank Of Canada upped their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a “sector perform” rating in a research note on Thursday, February 5th. Nine analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $88.78.

Cognizant Technology Solutions Stock Performance

The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $28.67 billion, a price-to-earnings ratio of 13.19, a price-to-earnings-growth ratio of 1.34 and a beta of 0.99. The stock’s 50-day simple moving average is $70.82 and its 200 day simple moving average is $73.34.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.03. The company had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The company’s revenue was up 4.9% on a year-over-year basis. During the same quarter last year, the business posted $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. 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 announced a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th were issued a dividend of $0.33 per share. The ex-dividend date was Wednesday, February 18th. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 annualized dividend and a dividend yield of 2.2%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 29.01%.

Insiders Place Their Bets

In other news, insider Surya Gummadi sold 1,728 shares of the firm’s stock in a transaction 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 completion of the sale, the insider directly owned 25,641 shares in the company, valued at approximately $2,129,741.46. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Michael Patsalos-Fox sold 2,000 shares of the company’s stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $84.23, for a total transaction of $168,460.00. Following the transaction, the director owned 29,729 shares in the company, valued at approximately $2,504,073.67. This trade represents a 6.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 6,859 shares of company stock valued at $575,460. 0.32% of the stock is currently owned by corporate insiders.

Institutional Trading of Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. Norges Bank bought a new position in Cognizant Technology Solutions in the 4th quarter valued at $690,959,000. GQG Partners LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter worth $673,651,000. CIBC Bancorp USA Inc. acquired a new position in shares of Cognizant Technology Solutions during the third quarter valued at $201,834,000. Cibc World Markets Corp bought a new position in Cognizant Technology Solutions in the fourth quarter valued at about $234,671,000. Finally, FIL Ltd boosted its holdings in Cognizant Technology Solutions by 46.6% in the fourth quarter. FIL Ltd now owns 6,680,508 shares of the information technology service provider’s stock valued at $554,482,000 after acquiring an additional 2,122,600 shares during the last quarter. 92.44% of the stock is owned by institutional investors.

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.