Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 52-Week Low After Analyst Downgrade

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) reached a new 52-week low during trading on Thursday after Daiwa Securities Group lowered their price target on the stock from $65.00 to $42.00. Daiwa Securities Group currently has a neutral rating on the stock. Cognizant Technology Solutions traded as low as $40.56 and last traded at $40.5870, with a volume of 1970813 shares trading hands. The stock had previously closed at $41.44.

A number of other equities analysts also recently issued reports on CTSH. UBS Group dropped their price objective on shares of Cognizant Technology Solutions from $60.00 to $55.00 in a report on Monday, May 11th. Citigroup increased their price target on shares of Cognizant Technology Solutions from $51.00 to $55.00 and gave the stock a “neutral” rating in a research report on Monday, June 8th. Mizuho dropped their price target on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. Truist Financial assumed coverage on shares of Cognizant Technology Solutions in a research report on Monday, June 1st. They set a “hold” rating and a $66.00 price objective for the company. Finally, Nomura raised their target price on Cognizant Technology Solutions from $92.00 to $93.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat.com, Cognizant Technology Solutions has an average rating of “Hold” and an average price target of $70.35.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Flagship Harbor Advisors LLC bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at about $28,000. Physician Wealth Advisors Inc. grew its position in shares of Cognizant Technology Solutions by 165.1% during the fourth quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider’s stock worth $28,000 after purchasing an additional 213 shares in the last quarter. Lodestone Wealth Management LLC bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at approximately $28,000. Prosperity Bancshares Inc bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at approximately $29,000. Finally, Towne Trust Company N.A lifted its holdings in Cognizant Technology Solutions by 85.0% in the 4th quarter. Towne Trust Company N.A now owns 370 shares of the information technology service provider’s stock worth $31,000 after purchasing an additional 170 shares in the last quarter. Institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Down 2.4%

The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $19.18 billion, a P/E ratio of 8.79, a P/E/G ratio of 0.86 and a beta of 0.81. The company has a 50 day simple moving average of $52.28 and a two-hundred day simple moving average of $65.88.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $5.41 billion. During the same quarter last year, the business posted $1.23 earnings per share. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, equities analysts predict that Cognizant Technology Solutions Corporation will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s payout ratio is currently 28.70%.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock repurchase program on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are 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.