Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, January 17th. The firm currently has a $84.00 target price on the information technology service provider’s stock. Zacks Investment Research‘s price target suggests a potential upside of 10.11% from the stock’s current price.
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, stiff competition in the IT services market remains a concern.”
A number of other brokerages have also recently commented on CTSH. SunTrust Banks reaffirmed a “buy” rating and set 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 set 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 reissued a “buy” rating and issued a $77.00 price objective on shares of Cognizant Technology Solutions in a report on Sunday, October 8th. Finally, Sanford C. Bernstein boosted their price objective on Cognizant Technology Solutions from $84.00 to $90.00 and gave the company an “outperform” rating in a report on Thursday, November 2nd. Six equities research analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $84.21.
Cognizant Technology Solutions (NASDAQ CTSH) traded up $1.13 during trading on Wednesday, hitting $76.29. The stock had a trading volume of 5,844,559 shares, compared to its average volume of 3,860,000. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.21 and a quick ratio of 3.29. The firm has a market cap of $44,980.00, a PE ratio of 30.27, a price-to-earnings-growth ratio of 1.54 and a beta of 1.11. Cognizant Technology Solutions has a 52-week low of $57.00 and a 52-week high of $79.28.
Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, February 7th. The information technology service provider reported $1.03 EPS for the quarter, topping the Zacks’ consensus estimate of $0.88 by $0.15. Cognizant Technology Solutions had a negative return on equity of 0.67% and a negative net margin of 0.50%. The company had revenue of $3.83 billion during the quarter, compared to analysts’ expectations of $3.82 billion. During the same quarter in the previous year, the firm posted $0.87 EPS. The firm’s revenue was up 10.6% compared to the same quarter last year. equities research analysts forecast that Cognizant Technology Solutions will post 3.97 EPS for the current year.
In other news, insider Sean Middleton sold 1,278 shares of the business’s stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $71.36, for a total transaction of $91,198.08. Following the transaction, the insider now directly owns 3,366 shares in the company, valued at approximately $240,197.76. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Malcolm Frank sold 9,462 shares of the business’s stock in a transaction that occurred on Wednesday, December 6th. The stock was sold at an average price of $70.61, for a total value of $668,111.82. Following the transaction, the vice president now owns 15,533 shares in the company, valued at $1,096,785.13. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 996,790 shares of company stock worth $73,331,177. Insiders own 1.08% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Vestpro Financial Partners Inc. dba CPF Texas acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at approximately $107,000. Shine Investment Advisory Services Inc. lifted its holdings in Cognizant Technology Solutions by 108.8% in the fourth quarter. Shine Investment Advisory Services Inc. now owns 1,512 shares of the information technology service provider’s stock valued at $107,000 after acquiring an additional 788 shares during the last quarter. Acrospire Investment Management LLC lifted 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 acquiring an additional 800 shares during the last quarter. Bank of Nova Scotia Trust Co. acquired a new position in Cognizant Technology Solutions in the third quarter valued at approximately $121,000. Finally, Cerebellum GP LLC acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at approximately $128,000. Institutional investors and hedge funds own 86.95% 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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