Bank of America Reiterates Underperform Rating for Cognizant Technology Solutions (CTSH)

Bank of America Reiterates Underperform Rating for Cognizant Technology Solutions (CTSH)

Bank of America reaffirmed their underperform rating on shares of Cognizant Technology Solutions (NASDAQ:CTSH) in a research report report published on Monday, Briefing.com Automated Import reports. The brokerage currently has a $57.00 price objective on the information technology service provider’s stock, down from their prior price objective of $71.00.

A number of other equities analysts have also recently issued reports on CTSH. Zacks Investment Research raised Cognizant Technology Solutions from a sell rating to a hold rating in a report on Friday, January 11th. BidaskClub raised Cognizant Technology Solutions from a hold rating to a buy rating in a report on Tuesday, January 22nd. Sanford C. Bernstein raised Cognizant Technology Solutions from a market perform rating to an outperform rating and set a $80.00 target price for the company in a report on Friday, January 25th. BMO Capital Markets raised their price target on Cognizant Technology Solutions to $80.00 and gave the company a market perform rating in a report on Monday, February 4th. Finally, KeyCorp raised their price target on Cognizant Technology Solutions from $79.00 to $84.00 and gave the company an overweight rating in a report on Thursday, February 7th. Five equities research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and eight have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $75.55.

Shares of CTSH opened at $59.10 on Monday. Cognizant Technology Solutions has a 1 year low of $57.47 and a 1 year high of $83.35. The company has a quick ratio of 3.12, a current ratio of 2.90 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $33.65 billion, a PE ratio of 14.70, a P/E/G ratio of 1.33 and a beta of 0.95.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its earnings results on Thursday, May 2nd. The information technology service provider reported $0.91 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.03 by ($0.12). Cognizant Technology Solutions had a return on equity of 21.50% and a net margin of 12.39%. The company had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.16 billion. During the same period in the previous year, the company posted $0.94 earnings per share. The company’s quarterly revenue was up 5.1% on a year-over-year basis. As a group, equities research analysts expect that Cognizant Technology Solutions will post 4.43 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Wednesday, May 22nd will be given a $0.20 dividend. The ex-dividend date is Tuesday, May 21st. This represents a $0.80 dividend on an annualized basis and a yield of 1.35%. Cognizant Technology Solutions’s payout ratio is 19.90%.

In other Cognizant Technology Solutions news, COO Srinivasan Veeraraghavachary sold 2,000 shares of the stock in a transaction on Tuesday, April 2nd. The stock was sold at an average price of $74.00, for a total value of $148,000.00. Following the transaction, the chief operating officer now directly owns 38,992 shares in the company, valued at approximately $2,885,408. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Allen Shaheen sold 396 shares of the stock in a transaction on Monday, April 1st. The shares were sold at an average price of $73.80, for a total value of $29,224.80. The disclosure for this sale can be found here. Insiders sold a total of 47,954 shares of company stock worth $3,456,742 over the last quarter. Corporate insiders own 0.56% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in CTSH. Acima Private Wealth LLC bought a new position in shares of Cognizant Technology Solutions in the 4th quarter worth $29,000. Sontag Advisory LLC bought a new position in shares of Cognizant Technology Solutions in the 4th quarter worth $30,000. Somerset Trust Co boosted its position in shares of Cognizant Technology Solutions by 152.0% in the 1st quarter. Somerset Trust Co now owns 494 shares of the information technology service provider’s stock worth $36,000 after purchasing an additional 298 shares during the last quarter. Penserra Capital Management LLC bought a new position in shares of Cognizant Technology Solutions in the 1st quarter worth $37,000. Finally, Citizens Financial Group Inc RI boosted its position in shares of Cognizant Technology Solutions by 176.5% in the 4th quarter. Citizens Financial Group Inc RI now owns 611 shares of the information technology service provider’s stock worth $39,000 after purchasing an additional 390 shares during the last quarter. Hedge funds and other institutional investors own 88.43% of the company’s stock.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services.

Further Reading: Institutional Investors

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