Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Average Recommendation of “Hold” by Brokerages

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) have been given a consensus rating of “Hold” by the twenty-four ratings firms that are presently covering the company, MarketBeat reports. Fourteen investment analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $62.00.

CTSH has been the topic of several recent research reports. Susquehanna lowered their price objective on Cognizant Technology Solutions from $98.00 to $88.00 and set a “positive” rating on the stock in a research report on Friday, May 1st. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, April 29th. Citigroup cut their price objective on shares of Cognizant Technology Solutions from $55.00 to $45.00 and set a “neutral” rating for the company in a report on Monday, July 13th. Mizuho decreased their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Cognizant Technology Solutions from $74.00 to $55.00 and set an “overweight” rating on the stock in a report on Friday.

Cognizant Technology Solutions Price Performance

Cognizant Technology Solutions stock opened at $45.45 on Tuesday. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03. The stock’s 50 day moving average is $47.14 and its 200-day moving average is $59.67. 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 company has a market capitalization of $21.54 billion, a price-to-earnings ratio of 9.88, a PEG ratio of 0.99 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly 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. The business had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the firm posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Equities research analysts expect that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Monday, May 18th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 28.70%.

Cognizant Technology Solutions declared that its board has approved a share buyback program 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 reacquire up to 9% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Cognizant Technology Solutions News Roundup

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Cognizant announced a strategic partnership with Gulf Edge to accelerate enterprise AI adoption in Southeast Asia, including Thailand. The deal highlights CTSH’s push into higher-growth AI services and could support longer-term revenue opportunities. Article Title
• Positive Sentiment: Investors appear to be buying ahead of Cognizant’s second-quarter earnings report on July 29, leaning on the company’s first-quarter momentum, which included revenue growth, strong bookings, and improved margin guidance. Article Title
• Positive Sentiment: Wall Street still broadly remains constructive: JPMorgan cut its price target to $55 from $74, but kept an overweight rating, while other recent analyst calls have been positive. That suggests expectations may be reset rather than deteriorating. Article Title
• Neutral Sentiment: Short-interest data did not show a meaningful change, so there is little evidence that the latest move is being driven by a short squeeze or bearish positioning.
• Negative Sentiment: The JPMorgan target cut reflects lower near-term upside expectations, and the stock remains well below its prior highs, which may temper enthusiasm if upcoming earnings disappoint.
• Negative Sentiment: Recent insider selling and mixed institutional ownership trends could be a modest headwind for sentiment, even though these factors do not appear to be the main driver today.

Institutional Trading of Cognizant Technology Solutions

A number of institutional investors have recently modified their holdings of the stock. JPL Wealth Management LLC bought a new position in shares of Cognizant Technology Solutions in the third quarter worth $25,000. Lodestone Wealth Management LLC acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at about $28,000. Flagship Harbor Advisors LLC bought a new stake in Cognizant Technology Solutions during the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. lifted its position in 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 during the period. Finally, Prosperity Bancshares Inc acquired a new stake in Cognizant Technology Solutions during the fourth quarter worth about $29,000. 92.44% of the stock is currently 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.