Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The brokerage currently has a $82.00 price objective on the information technology service provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.44% from the company’s previous close.
According to Zacks, “Cognizant shares have outperformed the industry in the past one year. Growth can be attributed to the company's significant exposure to the fast-growing verticals like Financial Services and Healthcare. Higher demand from payer and top-tier consulting clients in the healthcare segment will help to sustain the growth momentum. The company’s ability to harness the ongoing digital transition is a tailwind. The company is also significantly benefiting from accretive acquisitions. The extensive share repurchase program is another positive. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. However, the company faces significant geographic, domain and customer concentration risks which can negatively impact its business. Besides, stiff competition in the IT services market remains a concern.”
Other analysts have also issued reports about the stock. Barclays raised their price target on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an “overweight” rating in a research report on Monday, October 30th. They noted that the move was a valuation call. Royal Bank of Canada restated a “buy” rating and issued a $77.00 price target on shares of Cognizant Technology Solutions in a research report on Sunday, October 8th. Robert W. Baird raised their price target on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the stock an “outperform” rating in a research report on Thursday, October 19th. Pivotal Research began coverage on shares of Cognizant Technology Solutions in a research report on Wednesday, November 8th. They issued a “buy” rating and a $93.00 price target on the stock. Finally, BidaskClub lowered shares of Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research report on Tuesday, December 5th. One investment analyst has rated the stock with a sell rating, four have given a hold rating, twenty-one have assigned a buy rating and two have issued a strong buy rating to the company’s stock. Cognizant Technology Solutions has an average rating of “Buy” and an average target price of $81.75.
Cognizant Technology Solutions (CTSH) traded up $0.12 during trading hours on Wednesday, reaching $73.58. 840,956 shares of the company were exchanged, compared to its average volume of 3,344,450. Cognizant Technology Solutions has a 1-year low of $51.52 and a 1-year high of $76.51. The company has a quick ratio of 3.29, a current ratio of 3.29 and a debt-to-equity ratio of 0.07. The firm has a market cap of $43,320.00, a price-to-earnings ratio of 22.78, a PEG ratio of 1.40 and a beta of 1.08.
Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.13. Cognizant Technology Solutions had a net margin of 13.42% and a return on equity of 18.94%. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.77 billion. During the same period last year, the business posted $0.86 EPS. Cognizant Technology Solutions’s revenue was up 9.1% compared to the same quarter last year. equities analysts anticipate that Cognizant Technology Solutions will post 3.35 EPS for the current fiscal year.
In other Cognizant Technology Solutions news, insider Sumithra Gomatam sold 3,163 shares of the business’s stock in a transaction dated Tuesday, October 31st. The shares were sold at an average price of $76.00, for a total value of $240,388.00. Following the completion of the transaction, the insider now directly owns 6,346 shares of the company’s stock, valued at $482,296. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Venkat Krishnaswamy sold 4,000 shares of the business’s stock in a transaction dated Monday, November 6th. The stock was sold at an average price of $75.00, for a total transaction of $300,000.00. Following the completion of the transaction, the insider now directly owns 3,919 shares of the company’s stock, valued at $293,925. The disclosure for this sale can be found here. Insiders have sold a total of 567,254 shares of company stock valued at $40,907,258 over the last three months. 1.08% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Pathstone Family Office LLC raised its stake in shares of Cognizant Technology Solutions by 1,208.8% in the second quarter. Pathstone Family Office LLC now owns 1,479 shares of the information technology service provider’s stock worth $2,485,000 after acquiring an additional 1,366 shares during the last quarter. Acrospire Investment Management LLC grew its position in shares of Cognizant Technology Solutions by 92.6% during the 2nd quarter. Acrospire Investment Management LLC now owns 1,664 shares of the information technology service provider’s stock worth $110,000 after buying an additional 800 shares during the period. Bank of Nova Scotia Trust Co. acquired a new stake in shares of Cognizant Technology Solutions during the 3rd quarter worth approximately $121,000. WFG Advisors LP grew its position in shares of Cognizant Technology Solutions by 46.4% during the 2nd quarter. WFG Advisors LP now owns 1,958 shares of the information technology service provider’s stock worth $130,000 after buying an additional 621 shares during the period. Finally, Krilogy Financial LLC acquired a new stake in shares of Cognizant Technology Solutions during the 2nd quarter worth approximately $137,000. 85.98% of the stock is owned by institutional investors.
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Cognizant Technology Solutions Company Profile
Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services.
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