Zacks Investment Research upgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a hold rating to a buy rating in a research note released on Tuesday, January 2nd. Zacks Investment Research currently has $80.00 price objective on the information technology service provider’s stock.
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.”
A number of other equities research analysts also recently issued reports on CTSH. Barclays boosted their price target on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the company an overweight rating in a research note on Monday, October 30th. They noted that the move was a valuation call. Royal Bank of Canada reiterated a buy rating and set a $77.00 price target on shares of Cognizant Technology Solutions in a report on Sunday, October 8th. Robert W. Baird upped their target price on shares of Cognizant Technology Solutions from $80.00 to $90.00 and gave the company an outperform rating in a report on Thursday, October 19th. Pivotal Research began coverage on shares of Cognizant Technology Solutions in a report on Wednesday, November 8th. They issued a buy rating and a $93.00 target price for the company. Finally, BidaskClub downgraded shares of Cognizant Technology Solutions from a buy rating to a hold rating in a research report on Tuesday, December 5th. One analyst has rated the stock with a sell rating, four have given a hold rating, twenty-one have issued a buy rating and two have given a strong buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus target price of $81.75.
Shares of Cognizant Technology Solutions (NASDAQ:CTSH) traded up $0.51 during trading on Tuesday, hitting $73.97. 3,485,800 shares of the company traded hands, compared to its average volume of 3,364,643. The stock has a market capitalization of $43,460.00, a PE ratio of 22.90, a PEG ratio of 1.40 and a beta of 1.08. The company has a current ratio of 3.29, a quick ratio of 3.29 and a debt-to-equity ratio of 0.07. Cognizant Technology Solutions has a 12-month low of $51.52 and a 12-month high of $76.51.
Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.85 by $0.13. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.77 billion. Cognizant Technology Solutions had a net margin of 13.42% and a return on equity of 18.94%. The company’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.86 earnings per share. analysts predict that Cognizant Technology Solutions will post 3.35 earnings per share for the current fiscal year.
In other news, CEO Francisco Dsouza sold 482,000 shares of the stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $72.04, for a total transaction of $34,723,280.00. Following the transaction, the chief executive officer now directly owns 621,643 shares in the company, valued at approximately $44,783,161.72. 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 firm’s stock in a transaction that occurred on Monday, November 6th. The shares were 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 owns 3,919 shares in the company, valued at approximately $293,925. The disclosure for this sale can be found here. Insiders have sold a total of 567,254 shares of company stock worth $40,907,258 over the last ninety days. 1.08% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Acrospire Investment Management LLC raised its holdings in Cognizant Technology Solutions by 92.6% in the second quarter. Acrospire Investment Management LLC now owns 1,664 shares of the information technology service provider’s stock valued at $110,000 after buying an additional 800 shares during the period. Bank of Nova Scotia Trust Co. purchased a new stake in shares of Cognizant Technology Solutions during the third quarter valued at approximately $121,000. WFG Advisors LP raised its stake in shares of Cognizant Technology Solutions by 46.4% during the second quarter. WFG Advisors LP now owns 1,958 shares of the information technology service provider’s stock valued at $130,000 after purchasing an additional 621 shares during the period. Krilogy Financial LLC purchased a new stake in shares of Cognizant Technology Solutions during the second quarter valued at approximately $137,000. Finally, BB&T Investment Services Inc. raised its stake in shares of Cognizant Technology Solutions by 86.8% during the third quarter. BB&T Investment Services Inc. now owns 2,176 shares of the information technology service provider’s stock valued at $141,000 after purchasing an additional 1,011 shares during the period. Hedge funds and other institutional investors own 85.98% of the company’s stock.
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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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