Cognizant Technology Solutions (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $80.00 price target on the information technology service provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 12.64% from the stock’s previous close.
According to Zacks, “Cognizant shares have outperformed the industry in the past one year. Growth can be attributed to the company's 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 significantly benefiting from accretive acquisitions. The extensive share repurchase program is another positive. Cognizant has also gained deep industry expertise and knowledge of the domains through partnerships with top firms like Microsoft and SAP. 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.”
A number of other analysts have also recently commented on CTSH. Vetr raised Cognizant Technology Solutions from a “hold” rating to a “strong-buy” rating and set a $95.56 price target for the company in a research note on Wednesday, November 29th. KeyCorp reaffirmed a “buy” rating and issued a $79.00 price target on shares of Cognizant Technology Solutions in a research note on Friday, September 8th. Bank of America reaffirmed a “buy” rating and issued a $86.00 price target on shares of Cognizant Technology Solutions in a research note on Tuesday, September 12th. BidaskClub cut Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research note on Tuesday, December 5th. Finally, BMO Capital Markets upped their price target on Cognizant Technology Solutions from $76.00 to $78.00 and gave the company an “outperform” rating in a research note on Thursday, November 2nd. One research analyst has rated the stock with a sell rating, four have given a hold rating, twenty-one have issued a buy rating and two have assigned a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $81.83.
Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, November 1st. The information technology service provider reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.13. Cognizant Technology Solutions had a net margin of 13.42% and a return on equity of 18.94%. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.77 billion. During the same period in the prior year, the company posted $0.86 EPS. The company’s revenue was up 9.1% compared to the same quarter last year. research analysts expect that Cognizant Technology Solutions will post 3.35 earnings per share for the current fiscal year.
In other news, insider Gajakarnan Vibushanan Kandiah sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $72.18, for a total transaction of $216,540.00. Following the completion of the transaction, the insider now directly owns 7,724 shares of the company’s stock, valued at approximately $557,518.32. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Nelson Fox, Jr. sold 19,500 shares of the firm’s stock in a transaction that occurred on Tuesday, December 12th. The stock was sold at an average price of $72.00, for a total transaction of $1,404,000.00. Following the transaction, the director now directly owns 55,090 shares of the company’s stock, valued at $3,966,480. The disclosure for this sale can be found here. Over the last three months, insiders have sold 569,476 shares of company stock valued at $41,071,682. 1.08% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently modified their holdings of the company. Pathstone Family Office LLC boosted its holdings in shares of Cognizant Technology Solutions by 1,208.8% in the 2nd quarter. Pathstone Family Office LLC now owns 1,479 shares of the information technology service provider’s stock valued at $2,485,000 after buying an additional 1,366 shares during the last quarter. Acrospire Investment Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 92.6% in the 2nd quarter. Acrospire Investment Management LLC now owns 1,664 shares of the information technology service provider’s stock valued at $110,000 after buying an additional 800 shares during the last quarter. Bank of Nova Scotia Trust Co. acquired a new stake in shares of Cognizant Technology Solutions in the 3rd quarter valued at approximately $121,000. WFG Advisors LP boosted its holdings in shares of Cognizant Technology Solutions by 46.4% in the 2nd quarter. WFG Advisors LP now owns 1,958 shares of the information technology service provider’s stock valued at $130,000 after buying an additional 621 shares during the last quarter. Finally, Krilogy Financial LLC acquired a new stake in shares of Cognizant Technology Solutions in the 2nd quarter valued at approximately $137,000. 85.98% of the stock is owned by institutional investors.
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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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