Cognizant Technology Solutions (NASDAQ:CTSH) Sets New 1-Year High – Here’s Why

Shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) reached a new 52-week high on Tuesday . The stock traded as high as $91.25 and last traded at $88.70, with a volume of 1754 shares. The stock had previously closed at $90.70.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Mizuho increased their price objective on Cognizant Technology Solutions from $83.00 to $84.00 and gave the company a “neutral” rating in a research report on Friday, November 1st. UBS Group boosted their price objective on Cognizant Technology Solutions from $83.00 to $86.00 and gave the company a “neutral” rating in a research report on Monday, February 3rd. Robert W. Baird increased their target price on Cognizant Technology Solutions from $78.00 to $80.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Barclays boosted their price target on Cognizant Technology Solutions from $95.00 to $103.00 and gave the stock an “overweight” rating in a report on Monday, February 10th. Finally, StockNews.com upgraded shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a research report on Thursday, February 6th. Sixteen investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, Cognizant Technology Solutions currently has an average rating of “Hold” and a consensus target price of $83.67.

Cognizant Technology Solutions Trading Down 2.1 %

The stock has a market cap of $44.01 billion, a P/E ratio of 19.68, a P/E/G ratio of 2.32 and a beta of 1.07. The company has a 50-day moving average price of $80.55 and a two-hundred day moving average price of $78.24. The company has a current ratio of 2.09, a quick ratio of 2.23 and a debt-to-equity ratio of 0.06.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. On average, research analysts expect that Cognizant Technology Solutions Co. will post 4.99 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 26th. Shareholders of record on Tuesday, February 18th will be given a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.40%. The ex-dividend date of this dividend is Tuesday, February 18th. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. Cognizant Technology Solutions’s payout ratio is 26.61%.

Insider Transactions at Cognizant Technology Solutions

In other news, CAO John Sunshin Kim sold 5,000 shares of the business’s stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $80.11, for a total transaction of $400,550.00. Following the completion of the sale, the chief accounting officer now directly 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CTSH. Vanguard Group Inc. raised its stake in shares of Cognizant Technology Solutions by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 59,028,485 shares of the information technology service provider’s stock valued at $4,539,290,000 after acquiring an additional 515,881 shares in the last quarter. State Street Corp increased its holdings in Cognizant Technology Solutions by 3.6% during the 3rd quarter. State Street Corp now owns 24,985,816 shares of the information technology service provider’s stock worth $1,928,405,000 after purchasing an additional 867,176 shares during the period. Geode Capital Management LLC raised its position in Cognizant Technology Solutions by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 13,437,687 shares of the information technology service provider’s stock valued at $1,032,239,000 after purchasing an additional 157,464 shares in the last quarter. FMR LLC lifted its holdings in shares of Cognizant Technology Solutions by 1.1% in the 4th quarter. FMR LLC now owns 11,147,006 shares of the information technology service provider’s stock worth $857,205,000 after buying an additional 123,745 shares during the period. Finally, Invesco Ltd. grew its position in shares of Cognizant Technology Solutions by 2.8% during the 4th quarter. Invesco Ltd. now owns 10,655,180 shares of the information technology service provider’s stock worth $819,383,000 after buying an additional 287,973 shares in the last quarter. Institutional investors own 92.44% of the company’s stock.

About Cognizant Technology Solutions

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.