Zacks Investment Research upgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a hold rating to a buy rating in a report released on Tuesday, January 2nd. Zacks Investment Research currently has $80.00 target price 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 research firms have also recently commented on CTSH. Cantor Fitzgerald restated a buy rating and issued a $78.00 target price on shares of Cognizant Technology Solutions in a research note on Wednesday, November 1st. Oppenheimer restated a buy rating and issued a $80.00 target price on shares of Cognizant Technology Solutions in a research note on Wednesday, November 1st. Needham & Company LLC upgraded Cognizant Technology Solutions from a buy rating to a strong-buy rating and lifted their price objective for the company from $78.00 to $90.00 in a research note on Wednesday, November 1st. William Blair upgraded Cognizant Technology Solutions from a market perform rating to an outperform rating in a research note on Wednesday, November 1st. Finally, Credit Suisse Group reiterated an outperform rating and set a $89.00 price objective (up previously from $80.00) on shares of Cognizant Technology Solutions in a research note on Thursday, November 2nd. One analyst has rated the stock with a sell rating, four have assigned a hold rating, twenty-one have given a buy rating and two have given a strong buy rating to the stock. The company has an average rating of Buy and an average target price of $81.75.
Shares of Cognizant Technology Solutions (NASDAQ CTSH) traded up $0.63 during mid-day trading on Tuesday, hitting $74.64. The stock had a trading volume of 1,198,845 shares, compared to its average volume of 3,441,712. The company has a market cap of $43,930.00, a price-to-earnings ratio of 23.11, a P/E/G 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 released 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 company had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.77 billion. Cognizant Technology Solutions had a return on equity of 18.94% and a net margin of 13.42%. The firm’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.86 EPS. research analysts forecast that Cognizant Technology Solutions will post 3.35 EPS for the current fiscal year.
In related news, insider Gajakarnan Vibushanan Kandiah sold 3,000 shares of Cognizant Technology Solutions stock in a transaction on Friday, December 15th. The stock was sold at an average price of $72.18, for a total value of $216,540.00. Following the completion of the sale, the insider now owns 7,724 shares of the company’s stock, valued at $557,518.32. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Sean Middleton sold 1,278 shares of Cognizant Technology Solutions stock in a transaction on Thursday, December 7th. The stock was sold at an average price of $71.36, for a total value of $91,198.08. Following the completion of the sale, the insider now directly owns 3,366 shares of the company’s stock, valued at approximately $240,197.76. The disclosure for this sale can be found here. Insiders sold 567,286 shares of company stock valued at $40,909,609 in the last 90 days. Company insiders own 1.08% of the company’s stock.
Large investors have recently added to or reduced their stakes in the business. Acrospire Investment Management LLC grew its holdings in Cognizant Technology Solutions by 92.6% during 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 purchasing an additional 800 shares during the period. Bank of Nova Scotia Trust Co. bought a new stake in Cognizant Technology Solutions during the third quarter valued at about $121,000. WFG Advisors LP grew its holdings in 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 bought a new stake in Cognizant Technology Solutions during the second quarter valued at about $137,000. Finally, BB&T Investment Services Inc. grew its holdings in 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. 85.98% 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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