Cognizant Technology Solutions (NASDAQ:CTSH) Shares Gap Down Following Analyst Downgrade

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH – Get Rating) gapped down prior to trading on Thursday after Susquehanna lowered their price target on the stock from $100.00 to $98.00. The stock had previously closed at $70.30, but opened at $64.78. Cognizant Technology Solutions shares last traded at $66.83, with a volume of 51,864 shares changing hands.

Several other research analysts also recently commented on CTSH. Citigroup decreased their price objective on Cognizant Technology Solutions from $88.00 to $77.00 in a research note on Thursday. Robert W. Baird decreased their target price on Cognizant Technology Solutions from $94.00 to $84.00 in a research note on Friday, July 15th. JPMorgan Chase & Co. downgraded Cognizant Technology Solutions from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $82.00 to $77.00 in a research note on Thursday. Cowen decreased their target price on Cognizant Technology Solutions to $86.00 in a research note on Friday, July 22nd. Finally, Cowen decreased their target price on Cognizant Technology Solutions from $98.00 to $95.00 in a research note on Monday, May 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, Cognizant Technology Solutions currently has a consensus rating of “Hold” and an average target price of $86.79.

Insider Transactions at Cognizant Technology Solutions

In other news, Director Michael Patsalos-Fox sold 5,687 shares of the business’s stock in a transaction on Tuesday, May 17th. The stock was sold at an average price of $74.40, for a total value of $423,112.80. Following the completion of the transaction, the director now directly owns 57,534 shares of the company’s stock, valued at approximately $4,280,529.60. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In related news, EVP Andrew J. Stafford sold 5,867 shares of the business’s stock in a transaction on Tuesday, May 10th. The stock was sold at an average price of $77.24, for a total transaction of $453,167.08. Following the transaction, the executive vice president now directly owns 5,872 shares in the company, valued at approximately $453,553.28. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Michael Patsalos-Fox sold 5,687 shares of the business’s stock in a transaction on Tuesday, May 17th. The stock was sold at an average price of $74.40, for a total value of $423,112.80. Following the transaction, the director now owns 57,534 shares in the company, valued at $4,280,529.60. The disclosure for this sale can be found here. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of Cognizant Technology Solutions

Several large investors have recently added to or reduced their stakes in CTSH. MV Capital Management Inc. boosted its stake in shares of Cognizant Technology Solutions by 94.8% in the fourth quarter. MV Capital Management Inc. now owns 302 shares of the information technology service provider’s stock worth $27,000 after buying an additional 147 shares during the last quarter. Cornerstone Advisory LLC purchased a new position in Cognizant Technology Solutions in the fourth quarter worth approximately $27,000. Hardy Reed LLC purchased a new position in Cognizant Technology Solutions in the first quarter worth approximately $27,000. Harel Insurance Investments & Financial Services Ltd. boosted its position in shares of Cognizant Technology Solutions by 1,433.3% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 460 shares of the information technology service provider’s stock worth $41,000 after buying an additional 430 shares during the period. Finally, AdvisorNet Financial Inc boosted its position in shares of Cognizant Technology Solutions by 44.4% during the first quarter. AdvisorNet Financial Inc now owns 478 shares of the information technology service provider’s stock worth $43,000 after buying an additional 147 shares during the period. Hedge funds and other institutional investors own 90.73% of the company’s stock.

Cognizant Technology Solutions Stock Performance

The firm has a 50-day moving average price of $69.31 and a 200 day moving average price of $79.96. The firm has a market capitalization of $35.10 billion, a PE ratio of 15.87, a price-to-earnings-growth ratio of 1.37 and a beta of 1.10. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.05.

Cognizant Technology Solutions (NASDAQ:CTSH – Get Rating) last announced its quarterly earnings data on Wednesday, July 27th. The information technology service provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.05. Cognizant Technology Solutions had a return on equity of 19.07% and a net margin of 11.59%. The business had revenue of $4.91 billion for the quarter, compared to analysts’ expectations of $4.92 billion. During the same period last year, the firm earned $0.99 earnings per share. The company’s revenue for the quarter was up 7.0% compared to the same quarter last year. Research analysts expect that Cognizant Technology Solutions Co. will post 4.5 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, May 31st. Investors of record on Friday, May 20th were issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.60%. The ex-dividend date was Thursday, May 19th. Cognizant Technology Solutions’s dividend payout ratio is currently 25.90%.

About Cognizant Technology Solutions

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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; Healthcare; Products and Resources; and Communications, Media and Technology.