Cognizant Technology Solutions (CTSH) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research cut shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a research note issued to investors on Friday, January 12th.

According to Zacks, “Cognizant’s growth can be attributed to its 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 benefiting from accretive acquisitions and share repurchase program. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has mixed record of earnings surprises in recent quarters. 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.”

Several other research firms have also issued reports on CTSH. SunTrust Banks reaffirmed a buy rating and issued a $85.00 price target on shares of Cognizant Technology Solutions in a research report on Friday, November 3rd. Credit Suisse Group reaffirmed an outperform rating and issued a $89.00 price target (up previously from $80.00) on shares of Cognizant Technology Solutions in a research report on Thursday, November 2nd. Citigroup lifted their price target on Cognizant Technology Solutions from $73.00 to $75.00 and gave the stock a neutral rating in a research report on Tuesday, October 31st. Royal Bank of Canada reaffirmed a buy rating and issued a $77.00 price target on shares of Cognizant Technology Solutions in a research report on Sunday, October 8th. Finally, Sanford C. Bernstein lifted their price target on Cognizant Technology Solutions from $84.00 to $90.00 and gave the stock an outperform rating in a research report on Thursday, November 2nd. Five equities research analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and two have assigned a strong buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $81.98.

Shares of Cognizant Technology Solutions (CTSH) traded up $0.91 during mid-day trading on Friday, hitting $76.75. 5,518,200 shares of the stock were exchanged, compared to its average volume of 3,715,442. Cognizant Technology Solutions has a 1 year low of $51.52 and a 1 year high of $77.14. The company has a market cap of $45,450.00, a PE ratio of 23.76, a PEG ratio of 1.45 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 (NASDAQ:CTSH) last announced its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 EPS for the quarter, beating the Zacks’ consensus estimate of $0.85 by $0.13. The firm had revenue of $3.77 billion for the quarter, compared to analysts’ expectations 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 quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.86 EPS. equities research analysts expect that Cognizant Technology Solutions will post 3.35 earnings per share for the current year.

In related news, insider Sumithra Gomatam sold 3,163 shares of the business’s stock in a transaction that occurred on Tuesday, October 31st. The stock was sold at an average price of $76.00, for a total transaction of $240,388.00. Following the completion of the transaction, the insider now directly owns 6,346 shares in the company, valued at approximately $482,296. The sale was disclosed in a 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 that occurred on Monday, November 6th. The shares were sold at an average price of $75.00, for a total value of $300,000.00. Following the transaction, the insider now owns 3,919 shares of the company’s stock, valued at $293,925. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 844,786 shares of company stock valued at $61,507,334. Corporate insiders own 1.08% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Linscomb & Williams Inc. bought a new position in Cognizant Technology Solutions in the 3rd quarter worth approximately $278,000. Robeco Institutional Asset Management B.V. boosted its stake in Cognizant Technology Solutions by 45.7% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 143,385 shares of the information technology service provider’s stock worth $10,401,000 after purchasing an additional 44,982 shares during the period. Rothschild Asset Management Inc. bought a new position in Cognizant Technology Solutions in the 3rd quarter worth approximately $12,538,000. Palladium Partners LLC boosted its stake in Cognizant Technology Solutions by 2.5% in the 3rd quarter. Palladium Partners LLC now owns 98,625 shares of the information technology service provider’s stock worth $7,154,000 after purchasing an additional 2,425 shares during the period. Finally, Schwab Charles Investment Management Inc. boosted its stake in Cognizant Technology Solutions by 3.4% in the 3rd quarter. Schwab Charles Investment Management Inc. now owns 1,992,206 shares of the information technology service provider’s stock worth $144,515,000 after purchasing an additional 66,046 shares during the period. Institutional investors own 86.04% of the company’s stock.

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About Cognizant Technology Solutions

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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