Short Interest in Cognizant Technology Solutions Corp (NASDAQ:CTSH) Decreases By 7.9%

Cognizant Technology Solutions Corp (NASDAQ:CTSH) saw a large decline in short interest in May. As of May 15th, there was short interest totalling 8,080,000 shares, a decline of 7.9% from the April 30th total of 8,770,000 shares. Based on an average trading volume of 4,880,000 shares, the days-to-cover ratio is presently 1.7 days. Approximately 1.5% of the company’s shares are short sold.

Large investors have recently modified their holdings of the stock. Moser Wealth Advisors LLC purchased a new position in shares of Cognizant Technology Solutions in the 4th quarter worth about $31,000. Penserra Capital Management LLC increased its position in shares of Cognizant Technology Solutions by 40.0% during the fourth quarter. Penserra Capital Management LLC now owns 588 shares of the information technology service provider’s stock valued at $36,000 after buying an additional 168 shares during the period. Creative Financial Designs Inc. ADV increased its position in shares of Cognizant Technology Solutions by 1,818.9% during the first quarter. Creative Financial Designs Inc. ADV now owns 1,017 shares of the information technology service provider’s stock valued at $47,000 after buying an additional 964 shares during the period. S.A. Mason LLC bought a new position in shares of Cognizant Technology Solutions in the fourth quarter worth approximately $48,000. Finally, Brooktree Capital Management purchased a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $50,000. 88.27% of the stock is currently owned by institutional investors.

Several analysts have recently weighed in on the stock. Wells Fargo & Co reiterated a “buy” rating on shares of Cognizant Technology Solutions in a research note on Friday, May 8th. BidaskClub lowered shares of Cognizant Technology Solutions from a “sell” rating to a “strong sell” rating in a research note on Friday. BMO Capital Markets lowered shares of Cognizant Technology Solutions from an “outperform” rating to a “market perform” rating and boosted their price target for the company from $58.00 to $59.00 in a research note on Monday, May 4th. UBS Group decreased their price target on shares of Cognizant Technology Solutions from $57.00 to $37.00 and set a “sell” rating for the company in a research note on Tuesday, April 7th. Finally, Nomura restated a “hold” rating and set a $68.00 price target on shares of Cognizant Technology Solutions in a research note on Sunday, May 10th. Seven investment analysts have rated the stock with a sell rating, nine have given a hold rating and six have given a buy rating to the company’s stock. Cognizant Technology Solutions presently has a consensus rating of “Hold” and a consensus target price of $62.50.

CTSH traded down $0.29 during mid-day trading on Friday, reaching $51.45. 2,624,990 shares of the stock were exchanged, compared to its average volume of 4,044,953. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.90 and a current ratio of 2.90. The stock has a market capitalization of $27.97 billion, a PE ratio of 16.13, a price-to-earnings-growth ratio of 1.37 and a beta of 1.20. The company has a 50 day moving average price of $52.72 and a two-hundred day moving average price of $58.97. Cognizant Technology Solutions has a 1 year low of $40.01 and a 1 year high of $71.48.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Thursday, May 7th. The information technology service provider reported $0.96 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.93 by $0.03. The firm had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $4.22 billion. Cognizant Technology Solutions had a net margin of 10.46% and a return on equity of 20.90%. The business’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.91 EPS. Sell-side analysts expect that Cognizant Technology Solutions will post 3.44 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Wednesday, May 20th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.71%. The ex-dividend date is Tuesday, May 19th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 22.06%.

Cognizant Technology Solutions declared that its Board of Directors has authorized a share buyback program on Wednesday, February 5th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to purchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Cognizant Technology Solutions Company Profile

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.

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