Zacks Investment Research lowered shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a report published 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.”
Other research analysts also recently issued reports about the company. William Blair upgraded Cognizant Technology Solutions from a market perform rating to an outperform rating in a research note on Wednesday, November 1st. Needham & Company LLC raised Cognizant Technology Solutions from a buy rating to a strong-buy rating and lifted their price objective for the stock from $78.00 to $90.00 in a report on Wednesday, November 1st. Oppenheimer reissued a buy rating and set a $80.00 price target on shares of Cognizant Technology Solutions in a research report on Wednesday, November 1st. Cantor Fitzgerald reissued a buy rating and set a $78.00 price target on shares of Cognizant Technology Solutions in a research report on Wednesday, November 1st. Finally, Credit Suisse Group reaffirmed an outperform rating and issued a $89.00 price objective (up previously from $80.00) on shares of Cognizant Technology Solutions in a research report on Thursday, November 2nd. Five equities research analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and two have assigned a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus price target of $81.98.
Cognizant Technology Solutions (NASDAQ:CTSH) opened at $75.72 on Friday. Cognizant Technology Solutions has a 52 week low of $51.66 and a 52 week high of $78.95. The company has a market capitalization of $43,620.00, a price-to-earnings ratio of 23.44, a PEG ratio of 1.56 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.29 and a current ratio of 3.29.
Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.13. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. The firm had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.77 billion. During the same period in the previous year, the business earned $0.86 earnings per share. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis. analysts forecast that Cognizant Technology Solutions will post 3.35 EPS for the current year.
In other Cognizant Technology Solutions news, insider Chandrasekaran Ramakrishnan sold 25,000 shares of the firm’s stock in a transaction dated Monday, January 22nd. The shares were sold at an average price of $78.00, for a total transaction of $1,950,000.00. Following the completion of the transaction, the insider now owns 196,300 shares in the company, valued at $15,311,400. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Malcolm Frank sold 9,462 shares of the firm’s stock in a transaction dated Wednesday, December 6th. The stock was sold at an average price of $70.61, for a total transaction of $668,111.82. Following the transaction, the vice president now owns 15,533 shares of the company’s stock, valued at approximately $1,096,785.13. The disclosure for this sale can be found here. Insiders have sold 979,311 shares of company stock worth $71,870,078 over the last three months. Company insiders own 1.08% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. FMR LLC grew its holdings in Cognizant Technology Solutions by 81.6% during the 2nd quarter. FMR LLC now owns 25,065,752 shares of the information technology service provider’s stock worth $1,664,366,000 after acquiring an additional 11,262,360 shares during the period. Edgewood Management LLC grew its holdings in Cognizant Technology Solutions by 9.3% during the 3rd quarter. Edgewood Management LLC now owns 16,915,676 shares of the information technology service provider’s stock worth $1,227,063,000 after acquiring an additional 1,443,368 shares during the period. Nordea Investment Management AB grew its holdings in Cognizant Technology Solutions by 3.2% during the 3rd quarter. Nordea Investment Management AB now owns 10,076,020 shares of the information technology service provider’s stock worth $730,914,000 after acquiring an additional 313,364 shares during the period. Comgest Global Investors S.A.S. grew its holdings in Cognizant Technology Solutions by 24.5% during the 3rd quarter. Comgest Global Investors S.A.S. now owns 7,416,617 shares of the information technology service provider’s stock worth $538,001,000 after acquiring an additional 1,461,800 shares during the period. Finally, Swedbank grew its holdings in Cognizant Technology Solutions by 1.8% during the 3rd quarter. Swedbank now owns 6,621,266 shares of the information technology service provider’s stock worth $480,307,000 after acquiring an additional 116,263 shares during the period. 86.17% of the stock is owned by institutional investors and hedge funds.
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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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