Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 1-Year Low – Should You Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s stock price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $60.89 and last traded at $61.13, with a volume of 10482079 shares traded. The stock had previously closed at $65.03.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CTSH. BMO Capital Markets set a $83.00 price target on Cognizant Technology Solutions in a research note on Thursday, February 12th. Mizuho set a $87.00 price objective on Cognizant Technology Solutions in a report on Monday, February 9th. Susquehanna reaffirmed a “positive” rating and issued a $98.00 target price on shares of Cognizant Technology Solutions in a research note on Friday, January 23rd. Morgan Stanley lifted their price target on shares of Cognizant Technology Solutions from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 5th. Finally, Guggenheim restated a “buy” rating and issued a $100.00 price objective (up from $95.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 28th. Ten analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $90.17.

Cognizant Technology Solutions Trading Down 6.0%

The company has a market capitalization of $29.24 billion, a P/E ratio of 13.44, a PEG ratio of 1.41 and a beta of 0.95. The business has a 50 day moving average price of $79.90 and a 200 day moving average price of $74.57. The company has a current ratio of 2.14, a quick ratio of 2.14 and a debt-to-equity ratio of 0.04.

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

Cognizant Technology Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Wednesday, February 18th will be given a $0.33 dividend. The ex-dividend date is Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.2%. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. Cognizant Technology Solutions’s dividend payout ratio is currently 29.01%.

Insiders Place Their Bets

In other Cognizant Technology Solutions news, CAO John Sunshin Kim sold 2,500 shares of the business’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $80.00, for a total value of $200,000.00. Following the completion of the transaction, the chief accounting officer directly owned 36,149 shares of the company’s stock, valued at approximately $2,891,920. The trade was a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Surya Gummadi sold 1,728 shares of the firm’s stock in a transaction dated 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 directly owned 25,641 shares in the company, valued at approximately $2,129,741.46. This represents a 6.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 29,434 shares of company stock valued at $2,460,809. Insiders own 0.32% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of CTSH. JPL Wealth Management LLC acquired a new stake in shares of Cognizant Technology Solutions during the third quarter worth $25,000. Lodestone Wealth Management LLC bought a new position in Cognizant Technology Solutions during the 4th quarter worth about $28,000. Flagship Harbor Advisors LLC bought a new position in Cognizant Technology Solutions during the 4th quarter worth about $28,000. Physician Wealth Advisors Inc. raised its stake in shares of Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock valued at $28,000 after purchasing an additional 213 shares during the period. Finally, NewSquare Capital LLC lifted its holdings in shares of Cognizant Technology Solutions by 71.8% in the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider’s stock valued at $29,000 after purchasing an additional 153 shares in the last quarter. Institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Company Profile

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.