First Trust Advisors LP Decreases Stock Holdings in Cognizant Technology Solutions Co. (NASDAQ:CTSH)

First Trust Advisors LP lessened its holdings in Cognizant Technology Solutions Co. (NASDAQ:CTSH - Free Report) by 1.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,425,377 shares of the information technology service provider's stock after selling 160,560 shares during the quarter. Cognizant Technology Solutions makes up approximately 0.6% of First Trust Advisors LP's investment portfolio, making the stock its 19th largest position. First Trust Advisors LP owned 1.70% of Cognizant Technology Solutions worth $647,911,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in CTSH. Forum Financial Management LP lifted its position in shares of Cognizant Technology Solutions by 5.5% in the 4th quarter. Forum Financial Management LP now owns 5,938 shares of the information technology service provider's stock worth $457,000 after purchasing an additional 311 shares during the period. Strategic Investment Solutions Inc. IL acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at $70,000. Farringdon Capital Ltd. bought a new stake in Cognizant Technology Solutions during the fourth quarter valued at $401,000. MSH Capital Advisors LLC bought a new stake in Cognizant Technology Solutions in the fourth quarter worth approximately $1,145,000. Finally, Zacks Investment Management acquired a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at about $258,000. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Guggenheim reissued a "neutral" rating on shares of Cognizant Technology Solutions in a research report on Wednesday. UBS Group cut their price objective on shares of Cognizant Technology Solutions from $93.00 to $88.00 and set a "neutral" rating for the company in a report on Monday, March 17th. Morgan Stanley lowered their price target on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set an "equal weight" rating on the stock in a report on Wednesday, March 12th. BMO Capital Markets upped their target price on Cognizant Technology Solutions from $88.00 to $94.00 and gave the stock a "market perform" rating in a research note on Thursday, February 6th. Finally, Robert W. Baird cut their price target on shares of Cognizant Technology Solutions from $90.00 to $78.00 and set a "neutral" rating for the company in a research note on Tuesday, April 8th. Fifteen analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $84.53.

Cognizant Technology Solutions Stock Up 1.3 %

Shares of CTSH traded up $0.92 during midday trading on Thursday, reaching $71.95. 870,791 shares of the stock were exchanged, compared to its average volume of 3,592,378. The company has a current ratio of 2.09, a quick ratio of 2.09 and a debt-to-equity ratio of 0.06. The company's 50 day moving average is $77.62 and its two-hundred day moving average is $78.68. The company has a market capitalization of $35.59 billion, a P/E ratio of 15.95, a PEG ratio of 2.11 and a beta of 1.03. Cognizant Technology Solutions Co. has a 52 week low of $63.79 and a 52 week high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, topping 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, sell-side analysts anticipate that Cognizant Technology Solutions Co. will post 4.98 earnings per share for the current year.

Cognizant Technology Solutions Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 26th. Investors of record on Tuesday, February 18th were issued a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.72%. The ex-dividend date was Tuesday, February 18th. This is an increase from Cognizant Technology Solutions's previous quarterly dividend of $0.30. Cognizant Technology Solutions's dividend payout ratio is 27.49%.

Cognizant Technology Solutions announced that its board has approved a stock buyback program on Tuesday, March 25th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

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.