Zacks Investment Research Lowers Cognizant Technology Solutions (CTSH) to Hold

Zacks Investment Research downgraded shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Cognizant's growth can be attributed to its 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. Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition. The company is also significantly gaining from accretive acquisitions and share repurchase program. In the past year, Cognizant shares have outperformed the industry it belongs to. Estimates have been stable lately ahead of the company’s Q1 earnings release. 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. The company has mixed record of earnings surprises in recent quarters. “

A number of other brokerages have also recently weighed in on CTSH. BidaskClub upgraded shares of Cognizant Technology Solutions from a buy rating to a strong-buy rating in a research report on Friday, March 9th. Argus upgraded shares of Cognizant Technology Solutions from a hold rating to a buy rating and lifted their price target for the company from $81.80 to $100.00 in a research report on Thursday, February 22nd. ValuEngine upgraded shares of Cognizant Technology Solutions from a hold rating to a buy rating in a research report on Thursday, March 1st. Sanford C. Bernstein began coverage on shares of Cognizant Technology Solutions in a research report on Wednesday, March 28th. They set a market perform rating and a $57.50 price target for the company. Finally, Nomura lifted their price target on shares of Cognizant Technology Solutions from $71.00 to $79.00 and gave the company a neutral rating in a research report on Thursday, February 8th. Six research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and three have assigned a strong buy rating to the company’s stock. The company has an average rating of Buy and a consensus price target of $84.22.



Cognizant Technology Solutions stock traded up $0.75 during midday trading on Wednesday, hitting $80.68. 500,823 shares of the stock were exchanged, compared to its average volume of 3,682,922. Cognizant Technology Solutions has a fifty-two week low of $57.50 and a fifty-two week high of $85.10. The stock has a market cap of $47,279.30, a P/E ratio of 22.64, a PEG ratio of 1.51 and a beta of 1.04. The company has a current ratio of 3.21, a quick ratio of 3.21 and a debt-to-equity ratio of 0.07.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, February 7th. The information technology service provider reported $1.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.88 by $0.15. Cognizant Technology Solutions had a net margin of 10.15% and a return on equity of 19.94%. The business had revenue of $3.83 billion during the quarter, compared to analysts’ expectations of $3.82 billion. During the same period last year, the business earned $0.87 earnings per share. The business’s revenue for the quarter was up 10.6% on a year-over-year basis. analysts forecast that Cognizant Technology Solutions will post 4.21 EPS for the current year.

In related news, CFO Karen Mcloughlin sold 12,500 shares of Cognizant Technology Solutions stock in a transaction that occurred on Tuesday, January 16th. The shares were sold at an average price of $75.37, for a total value of $942,125.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, President Rajeev Mehta sold 108,217 shares of Cognizant Technology Solutions stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $77.32, for a total transaction of $8,367,338.44. The disclosure for this sale can be found here. Insiders sold 396,133 shares of company stock valued at $30,909,855 in the last 90 days. Company insiders own 1.08% of the company’s stock.

A number of institutional investors have recently modified their holdings of the stock. BlackRock Inc. lifted its stake in Cognizant Technology Solutions by 3.1% in the fourth quarter. BlackRock Inc. now owns 36,121,482 shares of the information technology service provider’s stock worth $2,565,349,000 after acquiring an additional 1,088,469 shares during the last quarter. Comgest Global Investors S.A.S. lifted its stake in Cognizant Technology Solutions by 18.3% in the fourth quarter. Comgest Global Investors S.A.S. now owns 8,774,817 shares of the information technology service provider’s stock worth $623,188,000 after acquiring an additional 1,358,200 shares during the last quarter. Pzena Investment Management LLC lifted its stake in Cognizant Technology Solutions by 2.8% in the fourth quarter. Pzena Investment Management LLC now owns 7,119,634 shares of the information technology service provider’s stock worth $505,636,000 after acquiring an additional 194,583 shares during the last quarter. Alliancebernstein L.P. lifted its stake in Cognizant Technology Solutions by 30.1% in the fourth quarter. Alliancebernstein L.P. now owns 6,309,025 shares of the information technology service provider’s stock worth $448,067,000 after acquiring an additional 1,458,220 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Cognizant Technology Solutions by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 6,005,499 shares of the information technology service provider’s stock worth $425,587,000 after acquiring an additional 209,232 shares during the last quarter. Institutional investors own 88.75% of the company’s stock.

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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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