Cognizant Technology Solutions (NASDAQ:CTSH) Earns Hold Rating from Analysts at Truist Financial

Equities researchers at Truist Financial assumed coverage on shares of Cognizant Technology Solutions (NASDAQ:CTSH) in a research note issued on Monday, Marketbeat Ratings reports. The brokerage set a “hold” rating and a $66.00 price target on the information technology service provider’s stock. Truist Financial’s price target would suggest a potential upside of 18.36% from the company’s previous close.

Several other research analysts have also commented on CTSH. Susquehanna dropped their price target on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a research report on Friday, May 1st. Citigroup dropped their price target on Cognizant Technology Solutions from $58.00 to $51.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. TD Cowen reiterated a “hold” rating and issued a $62.00 price target (down from $71.00) on shares of Cognizant Technology Solutions in a research report on Thursday, April 30th. The Goldman Sachs Group set a $75.00 price target on Cognizant Technology Solutions in a research report on Wednesday, April 29th. Finally, Weiss Ratings lowered Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Ten equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. According to MarketBeat.com, Cognizant Technology Solutions currently has a consensus rating of “Hold” and a consensus price target of $72.68.

Cognizant Technology Solutions Stock Performance

Shares of Cognizant Technology Solutions stock opened at $55.76 on Monday. The firm has a market cap of $26.42 billion, a price-to-earnings ratio of 12.12, a PEG ratio of 1.17 and a beta of 0.81. The business has a 50-day moving average price of $56.31 and a 200-day moving average price of $69.11. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions has a twelve month low of $45.48 and a twelve month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts anticipate that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock buyback plan on Monday, May 18th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Cognizant Technology Solutions

Several institutional investors and hedge funds have recently modified their holdings of CTSH. Norges Bank bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $690,959,000. GQG Partners LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $673,651,000. CIBC Bancorp USA Inc. bought a new stake in shares of Cognizant Technology Solutions during the third quarter valued at approximately $201,834,000. Cibc World Markets Corp bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $234,671,000. Finally, Pzena Investment Management LLC raised its stake in shares of Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock valued at $1,243,096,000 after acquiring an additional 2,633,683 shares in the last quarter. 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.