Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 12-Month High - What's Next?

Cognizant Technology Solutions Co. (NASDAQ:CTSH - Get Free Report)'s share price 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.

Analysts Set New Price Targets

CTSH has been the topic of several analyst reports. Mizuho raised their price objective on Cognizant Technology Solutions from $83.00 to $84.00 and gave the stock a "neutral" rating in a report on Friday, November 1st. Morgan Stanley raised their price objective on Cognizant Technology Solutions from $80.00 to $85.00 and gave the stock an "equal weight" rating in a report on Thursday, February 6th. Royal Bank of Canada raised their price objective on Cognizant Technology Solutions from $82.00 to $93.00 and gave the stock a "sector perform" rating in a report on Thursday, February 6th. Needham & Company LLC restated a "hold" rating on shares of Cognizant Technology Solutions in a report on Thursday, February 6th. Finally, BMO Capital Markets raised their price objective on Cognizant Technology Solutions from $88.00 to $94.00 and gave the stock a "market perform" rating in a report on Thursday, February 6th. Sixteen analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $83.67.

Cognizant Technology Solutions Stock Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09. The firm has a market capitalization of $41.95 billion, a PE ratio of 18.81, a price-to-earnings-growth ratio of 2.11 and a beta of 1.07. The stock has a 50-day moving average price of $81.11 and a 200-day moving average price of $78.57.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings data 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 return on equity of 16.78% and a net margin of 11.35%. On average, research analysts expect that Cognizant Technology Solutions Co. will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 26th. Investors of record on Tuesday, February 18th will be issued a $0.31 dividend. This is a positive change from Cognizant Technology Solutions's previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a yield of 1.46%. The ex-dividend date is Tuesday, February 18th. Cognizant Technology Solutions's payout ratio is currently 27.49%.

Insider Activity at Cognizant Technology Solutions

In other news, CAO John Sunshin Kim sold 5,000 shares of the business's 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. The trade was a 11.36 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.26% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in CTSH. Norges Bank acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter worth approximately $527,719,000. National Bank of Canada FI boosted its position in shares of Cognizant Technology Solutions by 54.6% during the fourth quarter. National Bank of Canada FI now owns 5,633,987 shares of the information technology service provider's stock worth $433,254,000 after buying an additional 1,990,515 shares during the period. AE Industrial Partners LP acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter worth approximately $113,088,000. Capital Research Global Investors lifted its position in Cognizant Technology Solutions by 98.9% in the fourth quarter. Capital Research Global Investors now owns 2,742,442 shares of the information technology service provider's stock worth $210,894,000 after purchasing an additional 1,363,570 shares during the period. Finally, Deutsche Bank AG lifted its position in Cognizant Technology Solutions by 47.8% in the fourth quarter. Deutsche Bank AG now owns 3,303,355 shares of the information technology service provider's stock worth $254,028,000 after purchasing an additional 1,068,420 shares during the period. 92.44% of the stock is currently owned by institutional investors and hedge funds.

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.