Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 1-Year High Following Strong Earnings

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $83.97 and last traded at $83.54, with a volume of 3639889 shares traded. The stock had previously closed at $82.90.

The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a return on equity of 17.08% and a net margin of 11.60%.

Cognizant Technology Solutions Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th will be paid a dividend of $0.31 per share. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a dividend yield of 1.42%. The ex-dividend date of this dividend is Tuesday, February 18th. Cognizant Technology Solutions’s payout ratio is currently 26.55%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on CTSH shares. Robert W. Baird lifted their price objective on Cognizant Technology Solutions from $78.00 to $80.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Morgan Stanley increased their target price on Cognizant Technology Solutions from $80.00 to $85.00 and gave the company an “equal weight” rating in a research report on Thursday. BMO Capital Markets increased their price target on Cognizant Technology Solutions from $88.00 to $94.00 and gave the company a “market perform” rating in a research note on Thursday. Needham & Company LLC reissued a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday. Finally, Mizuho increased their price target on Cognizant Technology Solutions from $83.00 to $84.00 and gave the company a “neutral” rating in a research note on Friday, November 1st. Sixteen research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, Cognizant Technology Solutions has a consensus rating of “Hold” and an average target price of $83.22.

Insider Buying and Selling

In other news, CAO John Sunshin Kim sold 5,000 shares of the business’s stock in a transaction dated Tuesday, December 3rd. The stock was sold at an average price of $80.11, for a total value of $400,550.00. Following the completion of the sale, the chief accounting officer now owns 39,022 shares of the company’s stock, valued at approximately $3,126,052.42. The trade was a 11.36 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.26% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CTSH. Ashton Thomas Private Wealth LLC grew its stake in shares of Cognizant Technology Solutions by 7.5% in the 4th quarter. Ashton Thomas Private Wealth LLC now owns 35,663 shares of the information technology service provider’s stock worth $2,742,000 after buying an additional 2,488 shares during the last quarter. Hartford Funds Management Co LLC lifted its position in Cognizant Technology Solutions by 4.3% in the 4th quarter. Hartford Funds Management Co LLC now owns 15,344 shares of the information technology service provider’s stock valued at $1,180,000 after acquiring an additional 631 shares in the last quarter. E Fund Management Co. Ltd. lifted its position in Cognizant Technology Solutions by 33.1% in the 4th quarter. E Fund Management Co. Ltd. now owns 15,892 shares of the information technology service provider’s stock valued at $1,222,000 after acquiring an additional 3,948 shares in the last quarter. Candriam S.C.A. lifted its position in Cognizant Technology Solutions by 5.9% in the 4th quarter. Candriam S.C.A. now owns 37,818 shares of the information technology service provider’s stock valued at $2,908,000 after acquiring an additional 2,093 shares in the last quarter. Finally, Inceptionr LLC bought a new position in shares of Cognizant Technology Solutions during the 4th quarter valued at $1,409,000. Hedge funds and other institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Trading Up 4.2 %

The stock has a fifty day moving average of $79.31 and a 200 day moving average of $77.45. The company has a market capitalization of $43.18 billion, a P/E ratio of 19.27, a PEG ratio of 2.21 and a beta of 1.07. The company has a debt-to-equity ratio of 0.08, a quick ratio of 2.23 and a current ratio of 2.23.

Cognizant Technology Solutions Company Profile

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, Health Sciences, Products and Resources, and Communications, Media and Technology.