Pzena Investment Management LLC Has $1.24 Billion Holdings in Cognizant Technology Solutions Corporation $CTSH

Pzena Investment Management LLC boosted its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 14.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 20,262,362 shares of the information technology service provider’s stock after buying an additional 2,633,683 shares during the quarter. Cognizant Technology Solutions makes up 4.1% of Pzena Investment Management LLC’s investment portfolio, making the stock its 2nd largest holding. Pzena Investment Management LLC’s holdings in Cognizant Technology Solutions were worth $1,243,096,000 as of its most recent filing with the Securities and Exchange Commission.

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

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Weiss Ratings cut shares of Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Susquehanna reduced their target price on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating for the company in a report on Friday, May 1st. Nomura dropped their price target on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating on the stock in a report on Wednesday. The Goldman Sachs Group set a $75.00 target price on Cognizant Technology Solutions in a research report on Wednesday, April 29th. Finally, Jefferies Financial Group lowered their target price on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Eleven analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $68.35.

Cognizant Technology Solutions Price Performance

NASDAQ CTSH opened at $41.07 on Thursday. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.04. The company has a market cap of $19.46 billion, a PE ratio of 8.93, a price-to-earnings-growth ratio of 0.82 and a beta of 0.87. Cognizant Technology Solutions Corporation has a 52 week low of $37.08 and a 52 week high of $87.03. The firm’s 50-day simple moving average is $50.18 and its two-hundred day simple moving average is $64.39.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The firm had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.41 billion. During the same quarter last year, the company earned $1.23 earnings per share. The company’s revenue was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Research analysts predict that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date was Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 3.2%. Cognizant Technology Solutions’s dividend payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its board has initiated a share repurchase plan on Monday, May 18th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to repurchase up to 9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

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.