Cognizant Technology Solutions Corp (NASDAQ:CTSH) Sees Significant Drop in Short Interest

Cognizant Technology Solutions Corp (NASDAQ:CTSH) was the target of a large decline in short interest in July. As of July 31st, there was short interest totalling 8,351,700 shares, a decline of 18.5% from the June 30th total of 10,245,800 shares. Based on an average trading volume of 5,240,000 shares, the days-to-cover ratio is currently 1.6 days. Currently, 1.5% of the company’s stock are short sold.

CTSH has been the subject of several recent research reports. Wedbush lowered shares of Cognizant Technology Solutions from an “outperform” rating to a “neutral” rating and lowered their target price for the company from $80.00 to $70.00 in a report on Friday, May 3rd. Daiwa Capital Markets lowered shares of Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a report on Tuesday, May 7th. Oppenheimer lowered shares of Cognizant Technology Solutions from an “outperform” rating to a “market perform” rating in a report on Friday, May 3rd. Cantor Fitzgerald reiterated an “overweight” rating and set a $75.00 target price (down from $87.00) on shares of Cognizant Technology Solutions in a report on Friday, May 3rd. Finally, Nomura lowered shares of Cognizant Technology Solutions to a “hold” rating in a report on Friday, May 3rd. Five research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and seven have assigned a buy rating to the company’s stock. Cognizant Technology Solutions has an average rating of “Hold” and an average price target of $74.48.

NASDAQ CTSH traded down $0.07 during mid-day trading on Thursday, reaching $60.58. The stock had a trading volume of 3,268,977 shares, compared to its average volume of 4,578,915. Cognizant Technology Solutions has a 1 year low of $56.73 and a 1 year high of $78.59. The stock has a market cap of $33.78 billion, a PE ratio of 15.07, a price-to-earnings-growth ratio of 1.53 and a beta of 1.01. The company has a fifty day moving average price of $64.30 and a 200 day moving average price of $67.26. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.55 and a quick ratio of 2.55.



Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, July 31st. The information technology service provider reported $0.94 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.01. The company had revenue of $4.14 billion during the quarter, compared to analyst estimates of $4.13 billion. Cognizant Technology Solutions had a net margin of 12.61% and a return on equity of 20.52%. The firm’s revenue for the quarter was up 3.4% on a year-over-year basis. During the same period in the previous year, the business earned $1.05 EPS. As a group, equities research analysts expect that Cognizant Technology Solutions will post 3.96 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Shareholders of record on Thursday, August 22nd will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, August 21st. This represents a $0.80 dividend on an annualized basis and a yield of 1.32%. Cognizant Technology Solutions’s dividend payout ratio is presently 19.90%.

In other Cognizant Technology Solutions news, CEO Brian Humphries bought 19,000 shares of the stock in a transaction dated Thursday, May 23rd. The stock was purchased at an average cost of $61.09 per share, for a total transaction of $1,160,710.00. Following the completion of the acquisition, the chief executive officer now owns 19,000 shares of the company’s stock, valued at $1,160,710. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Karen Mcloughlin sold 1,500 shares of Cognizant Technology Solutions stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $62.85, for a total transaction of $94,275.00. Following the transaction, the chief financial officer now owns 67,423 shares of the company’s stock, valued at $4,237,535.55. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 47,120 shares of company stock worth $2,960,866. Insiders own 0.56% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Field & Main Bank raised its stake in Cognizant Technology Solutions by 350.0% during the 2nd quarter. Field & Main Bank now owns 450 shares of the information technology service provider’s stock valued at $29,000 after buying an additional 350 shares during the last quarter. Resources Investment Advisors Inc. grew its position in shares of Cognizant Technology Solutions by 125.6% during the 1st quarter. Resources Investment Advisors Inc. now owns 503 shares of the information technology service provider’s stock valued at $36,000 after acquiring an additional 280 shares during the period. Penserra Capital Management LLC bought a new stake in shares of Cognizant Technology Solutions during the 1st quarter valued at $37,000. Berman Capital Advisors LLC grew its position in shares of Cognizant Technology Solutions by 137.7% during the 2nd quarter. Berman Capital Advisors LLC now owns 637 shares of the information technology service provider’s stock valued at $40,000 after acquiring an additional 369 shares during the period. Finally, Nelson Roberts Investment Advisors LLC grew its position in shares of Cognizant Technology Solutions by 7,175.0% during the 1st quarter. Nelson Roberts Investment Advisors LLC now owns 582 shares of the information technology service provider’s stock valued at $42,000 after acquiring an additional 574 shares during the period. Institutional investors and hedge funds own 88.41% of the company’s stock.

About Cognizant Technology Solutions

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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