Zacks Investment Research lowered shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a research note issued to investors on Wednesday, April 11th.
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. Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition. The company is also significantly gaining from accretive acquisitions and share repurchase program. In the past year, Cognizant shares have outperformed the industry it belongs to. Estimates have been stable lately ahead of the company’s Q1 earnings release. 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. The company has mixed record of earnings surprises in recent quarters. “
A number of other equities research analysts have also issued reports on the company. BidaskClub lowered Cognizant Technology Solutions from a hold rating to a sell rating in a research report on Friday, December 29th. Nomura raised their price target on Cognizant Technology Solutions from $71.00 to $79.00 and gave the company a neutral rating in a research note on Thursday, February 8th. Citigroup upgraded Cognizant Technology Solutions from a neutral rating to a buy rating and raised their price target for the company from $75.84 to $79.00 in a research note on Thursday, January 18th. Morgan Stanley raised their price target on Cognizant Technology Solutions from $77.00 to $84.00 and gave the company an equal weight rating in a research note on Monday, February 5th. Finally, Barclays reiterated a buy rating and set a $86.00 target price on shares of Cognizant Technology Solutions in a research note on Friday, January 5th. Six research analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and three have assigned a strong buy rating to the stock. The company presently has an average rating of Buy and a consensus price target of $84.22.
Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, February 7th. The information technology service provider reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.88 by $0.15. The firm had revenue of $3.83 billion for the quarter, compared to analyst estimates of $3.82 billion. Cognizant Technology Solutions had a return on equity of 19.94% and a net margin of 10.15%. The company’s quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.87 earnings per share. equities analysts predict that Cognizant Technology Solutions will post 4.21 earnings per share for the current fiscal year.
In related news, VP Malcolm Frank sold 1,091 shares of the company’s stock in a transaction dated Monday, March 5th. The stock was sold at an average price of $82.11, for a total transaction of $89,582.01. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP James Patrick Lennox sold 959 shares of the company’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $83.64, for a total value of $80,210.76. Following the sale, the executive vice president now owns 5,203 shares in the company, valued at approximately $435,178.92. The disclosure for this sale can be found here. Insiders have sold a total of 288,508 shares of company stock worth $22,727,230 in the last 90 days. 1.08% of the stock is currently owned by corporate insiders.
Several institutional investors have recently made changes to their positions in CTSH. Arrowstreet Capital Limited Partnership boosted its position in shares of Cognizant Technology Solutions by 296.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,422,593 shares of the information technology service provider’s stock valued at $314,093,000 after purchasing an additional 3,307,799 shares in the last quarter. Winslow Capital Management LLC acquired a new position in Cognizant Technology Solutions during the 4th quarter worth approximately $217,524,000. APG Asset Management N.V. raised its stake in Cognizant Technology Solutions by 241.2% during the 4th quarter. APG Asset Management N.V. now owns 3,580,820 shares of the information technology service provider’s stock worth $211,784,000 after buying an additional 2,531,494 shares during the period. Genesis Asset Managers LLP raised its stake in Cognizant Technology Solutions by 92.3% during the 4th quarter. Genesis Asset Managers LLP now owns 3,738,507 shares of the information technology service provider’s stock worth $265,509,000 after buying an additional 1,794,164 shares during the period. Finally, Alliancebernstein L.P. raised its stake in Cognizant Technology Solutions by 30.1% during the 4th quarter. Alliancebernstein L.P. now owns 6,309,025 shares of the information technology service provider’s stock worth $448,067,000 after buying an additional 1,458,220 shares during the period. Institutional investors own 88.54% 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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