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

Cognizant Technology Solutions Co. (NASDAQ:CTSH) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $82.95 and last traded at $82.52, with a volume of 150498 shares. The stock had previously closed at $81.19.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CTSH. TD Cowen upped their price objective on shares of Cognizant Technology Solutions from $75.00 to $76.00 and gave the stock a “hold” rating in a research report on Thursday, October 31st. Robert W. Baird increased their target price on shares of Cognizant Technology Solutions from $78.00 to $80.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. StockNews.com cut shares of Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research report on Monday, January 13th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Cognizant Technology Solutions from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. Finally, Barclays upgraded shares of Cognizant Technology Solutions from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $80.00 to $95.00 in a research report on Tuesday, December 17th. Fifteen equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $81.19.

Cognizant Technology Solutions Trading Up 2.2 %

The stock has a market capitalization of $41.15 billion, a PE ratio of 18.37, a price-to-earnings-growth ratio of 2.06 and a beta of 1.07. The business’s 50-day moving average is $79.01 and its two-hundred day moving average is $77.14. 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 (NASDAQ:CTSH) last announced its earnings results on Wednesday, October 30th. The information technology service provider reported $1.25 earnings per share for the quarter, beating the consensus estimate of $1.15 by $0.10. Cognizant Technology Solutions had a net margin of 11.60% and a return on equity of 17.08%. The firm had revenue of $5.04 billion during the quarter, compared to the consensus estimate of $4.99 billion. During the same quarter in the previous year, the company posted $1.16 EPS. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. As a group, equities research analysts anticipate that Cognizant Technology Solutions Co. will post 4.66 earnings per share for the current year.

Insider Activity

In other news, CAO John Sunshin Kim sold 5,000 shares of the stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $80.11, for a total transaction of $400,550.00. Following the completion of the transaction, the chief accounting officer now directly owns 39,022 shares in the company, valued at approximately $3,126,052.42. This represents a 11.36 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp increased its holdings in shares of Cognizant Technology Solutions by 3.6% during the third quarter. State Street Corp now owns 24,985,816 shares of the information technology service provider’s stock valued at $1,928,405,000 after purchasing an additional 867,176 shares during the period. Geode Capital Management LLC raised its stake in shares of Cognizant Technology Solutions by 1.3% in the 3rd quarter. Geode Capital Management LLC now owns 13,280,223 shares of the information technology service provider’s stock valued at $1,022,728,000 after acquiring an additional 173,667 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Cognizant Technology Solutions by 1.4% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,244,731 shares of the information technology service provider’s stock valued at $250,428,000 after acquiring an additional 44,129 shares in the last quarter. Cibc World Market Inc. raised its stake in shares of Cognizant Technology Solutions by 34.0% in the 4th quarter. Cibc World Market Inc. now owns 2,784,668 shares of the information technology service provider’s stock valued at $214,141,000 after acquiring an additional 705,946 shares in the last quarter. Finally, Bank of Montreal Can grew its holdings in Cognizant Technology Solutions by 29.7% in the 3rd quarter. Bank of Montreal Can now owns 2,748,982 shares of the information technology service provider’s stock valued at $211,369,000 after buying an additional 628,970 shares during the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

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.