Brokerages Set Cognizant Technology Solutions Co. (NASDAQ:CTSH) PT at $84.56

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) have earned an average rating of “Hold” from the eighteen ratings firms that are covering the company, Marketbeat Ratings reports. Fourteen investment analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $84.56.

A number of analysts have recently commented on the company. BMO Capital Markets lifted their target price on Cognizant Technology Solutions from $88.00 to $94.00 and gave the stock a “market perform” rating in a research report on Thursday, February 6th. StockNews.com upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research note on Thursday, February 6th. Needham & Company LLC reissued a “hold” rating on shares of Cognizant Technology Solutions in a research report on Thursday, March 27th. Mizuho raised shares of Cognizant Technology Solutions to a “hold” rating in a report on Wednesday, March 19th. Finally, Royal Bank of Canada reaffirmed a “sector perform” rating and set a $93.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, March 26th.

Cognizant Technology Solutions Stock Down 6.2 %

Cognizant Technology Solutions stock opened at $68.74 on Wednesday. The stock’s fifty day moving average is $82.21 and its two-hundred day moving average is $79.38. The stock has a market cap of $34.00 billion, a PE ratio of 15.24, a P/E/G ratio of 2.11 and a beta of 1.03. Cognizant Technology Solutions has a 1-year low of $63.79 and a 1-year high of $90.82. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. On average, sell-side analysts expect that Cognizant Technology Solutions will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, February 26th. Shareholders of record on Tuesday, February 18th were issued a $0.31 dividend. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. The ex-dividend date was Tuesday, February 18th. This represents a $1.24 annualized dividend and a yield of 1.80%. Cognizant Technology Solutions’s dividend payout ratio is 27.49%.

Cognizant Technology Solutions announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 25th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology service provider to buy up to 5.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CTSH. Unison Advisors LLC grew its holdings in Cognizant Technology Solutions by 0.4% during the 4th quarter. Unison Advisors LLC now owns 29,595 shares of the information technology service provider’s stock valued at $2,276,000 after buying an additional 114 shares during the last quarter. Congress Wealth Management LLC DE increased its position in Cognizant Technology Solutions by 0.5% during the 4th quarter. Congress Wealth Management LLC DE now owns 24,965 shares of the information technology service provider’s stock worth $1,920,000 after purchasing an additional 126 shares in the last quarter. CoreCap Advisors LLC raised its stake in Cognizant Technology Solutions by 21.5% in the 4th quarter. CoreCap Advisors LLC now owns 711 shares of the information technology service provider’s stock valued at $55,000 after purchasing an additional 126 shares during the last quarter. Sound View Wealth Advisors Group LLC boosted its stake in shares of Cognizant Technology Solutions by 4.6% during the 4th quarter. Sound View Wealth Advisors Group LLC now owns 2,884 shares of the information technology service provider’s stock worth $222,000 after purchasing an additional 127 shares during the last quarter. Finally, Graypoint LLC boosted its stake in shares of Cognizant Technology Solutions by 2.9% during the 4th quarter. Graypoint LLC now owns 4,795 shares of the information technology service provider’s stock worth $369,000 after purchasing an additional 134 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.