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Cognizant Technology Solutions (CTSH) Stock Price, News & Analysis

$75.35
-0.87 (-1.14%)
(As of 09/18/2024 ET)

About Cognizant Technology Solutions Stock (NASDAQ:CTSH)

Key Stats

Today's Range
$75.19
$76.27
50-Day Range
$70.14
$77.87
52-Week Range
$62.14
$80.27
Volume
2.04 million shs
Average Volume
3.93 million shs
Market Capitalization
$37.46 billion
P/E Ratio
18.11
Dividend Yield
1.59%
Price Target
$77.44
Consensus Rating
Hold

Company Overview

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. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

Cognizant Technology Solutions Stock Analysis - MarketRank™

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Overall MarketRank™: 92nd Percentile

Cognizant Technology Solutions scored higher than 92% of companies evaluated by MarketBeat, and ranked 87th out of 671 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Cognizant Technology Solutions has received a consensus rating of Hold. The company's average rating score is 2.10, and is based on 3 buy ratings, 17 hold ratings, and 1 sell rating.

  • Amount of Analyst Coverage

    Cognizant Technology Solutions has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about Cognizant Technology Solutions' stock forecast and price target.
  • Earnings Growth

    Earnings for Cognizant Technology Solutions are expected to grow by 7.14% in the coming year, from $4.62 to $4.95 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Cognizant Technology Solutions is 18.11, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 134.09.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Cognizant Technology Solutions is 18.11, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 270.12.

  • Price to Earnings Growth Ratio

    Cognizant Technology Solutions has a PEG Ratio of 2.14. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    Cognizant Technology Solutions has a P/B Ratio of 2.84. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

  • Read more about Cognizant Technology Solutions' valuation and earnings.
  • Percentage of Shares Shorted

    2.36% of the float of Cognizant Technology Solutions has been sold short.
  • Short Interest Ratio / Days to Cover

    Cognizant Technology Solutions has a short interest ratio ("days to cover") of 3.2, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Cognizant Technology Solutions has recently increased by 14.05%, indicating that investor sentiment is decreasing significantly.
  • Dividend Yield

    Cognizant Technology Solutions pays a meaningful dividend of 1.57%, higher than the bottom 25% of all stocks that pay dividends.

  • Dividend Growth

    Cognizant Technology Solutions does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of Cognizant Technology Solutions is 28.85%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, Cognizant Technology Solutions will have a dividend payout ratio of 24.24% next year. This indicates that Cognizant Technology Solutions will be able to sustain or increase its dividend.

  • Read more about Cognizant Technology Solutions' dividend.
  • Percentage of Shares Shorted

    2.36% of the float of Cognizant Technology Solutions has been sold short.
  • Short Interest Ratio / Days to Cover

    Cognizant Technology Solutions has a short interest ratio ("days to cover") of 3.2, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Cognizant Technology Solutions has recently increased by 14.05%, indicating that investor sentiment is decreasing significantly.
  • News Sentiment

    Cognizant Technology Solutions has a news sentiment score of 0.63. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Computer and Technology companies.
  • News Coverage This Week

    MarketBeat has tracked 24 news articles for Cognizant Technology Solutions this week, compared to 9 articles on an average week.
  • Search Interest

    Only 6 people have searched for CTSH on MarketBeat in the last 30 days. This is a decrease of -25% compared to the previous 30 days.
  • MarketBeat Follows

    Only 2 people have added Cognizant Technology Solutions to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Cognizant Technology Solutions insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $495,584.00 in company stock.

  • Percentage Held by Insiders

    Only 0.26% of the stock of Cognizant Technology Solutions is held by insiders.

  • Percentage Held by Institutions

    92.44% of the stock of Cognizant Technology Solutions is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Cognizant Technology Solutions' insider trading history.

CTSH Stock News Headlines

This diversified cannabis pioneer could make huge moves soon
The cannabis industry seems deeply saturated, so how do you know where to best invest your money? Let’s start with diversification and experience. Founded in 2005, this company serves a diverse and expansive customer base with more than 8,000 retail locations, including licensed cannabis dispensaries, smoke shops, and specialty retailers.
Cognizant Technology Solutions (NASDAQ:CTSH) Lifted to Buy at StockNews.com
See More Headlines

CTSH Stock Analysis - Frequently Asked Questions

Cognizant Technology Solutions' stock was trading at $75.53 on January 1st, 2024. Since then, CTSH stock has decreased by 0.2% and is now trading at $75.35.
View the best growth stocks for 2024 here
.

Cognizant Technology Solutions Co. (NASDAQ:CTSH) announced its earnings results on Wednesday, July, 31st. The information technology service provider reported $1.17 EPS for the quarter, beating analysts' consensus estimates of $1.12 by $0.05. The business's revenue was down .7% on a year-over-year basis.
Read the conference call transcript
.

Cognizant Technology Solutions shares split before market open on Monday, March 10th 2014. The 2-1 split was announced on Wednesday, February 5th 2014. The newly issued shares were distributed to shareholders after the market closes on Friday, March 7th 2014. An investor that had 100 shares of stock prior to the split would have 200 shares after the split.

Cognizant Technology Solutions subsidiaries include these companies: Devbridge, HUNTER Technical Resources, Cognizant Life Sciences Manufacturing, ESG Mobility, Servian, Magenic, Linium LLC, and more.

Top institutional shareholders of Cognizant Technology Solutions include Pzena Investment Management LLC (3.74%), Bank of New York Mellon Corp (2.30%), Dimensional Fund Advisors LP (1.12%) and Legal & General Group Plc (1.07%). Insiders that own company stock include Michael Patsalos-Fox, Ravi Kumar Singisetti, Leo S Jr Mackay, Zein Abdalla, Kathryn Diaz, Robert C Walker, Andrew J Stafford, Maureen Breakiron-Evans, Rajesh Nambiar, Becky Schmitt and Robert Telesmanic.
View institutional ownership trends
.

Shares of CTSH stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that Cognizant Technology Solutions investors own include Hawkins (HWKN), NVIDIA (NVDA), Netflix (NFLX), Xtrackers California Municipal Bond ETF (CA), Walt Disney (DIS), Intel (INTC) and Micron Technology (MU).

Company Calendar

Last Earnings
7/31/2024
Ex-Dividend for 8/28 Dividend
8/20/2024
Dividend Payable
8/28/2024
Today
9/18/2024
Next Earnings (Estimated)
11/06/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Custom computer programming services
Sub-Industry
IT Consulting & Other Services
Current Symbol
NASDAQ:CTSH
CUSIP
19244610
Employees
347,700
Year Founded
1994

Price Target and Rating

Average Stock Price Target
$77.44
High Stock Price Target
$90.00
Low Stock Price Target
$65.00
Potential Upside/Downside
+2.8%
Consensus Rating
Hold
Rating Score (0-4)
2.10
Research Coverage
21 Analysts

Profitability

Net Income
$2.13 billion
Pretax Margin
15.11%

Debt

Sales & Book Value

Annual Sales
$19.27 billion
Cash Flow
$5.66 per share
Book Value
$26.56 per share

Miscellaneous

Free Float
495,906,000
Market Cap
$37.46 billion
Optionable
Optionable
Beta
1.05

Social Links

Should I Buy Cognizant Technology Solutions Stock? CTSH Pros and Cons Explained

These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Tuesday, September 3, 2024. Please send any questions or comments about these Cognizant Technology Solutions pros and cons to contact@marketbeat.com.

Cognizant Technology Solutions
Bull Case

green Wall Street bull icon

Here are some ways that investors could benefit from investing in Cognizant Technology Solutions Co.:

  • Cognizant Technology Solutions had its price target increased to $76.00 by analysts at The Goldman Sachs Group, indicating positive analyst sentiment towards the stock.
  • Recent insider selling by the CEO at an average price of $73.66 could be seen as a positive sign, as insiders selling at higher prices may indicate confidence in the stock's valuation.
  • The company's current stock price of $76.87 is close to the increased price target of $76.00, potentially signaling room for further growth based on analyst projections.
  • Cognizant Technology Solutions has a market capitalization of $38.22 billion, indicating the company's size and stability in the market.
  • The company's debt-to-equity ratio of 0.04 suggests a conservative financial structure, which may be appealing to risk-averse investors.

Cognizant Technology Solutions
Bear Case

red Wall Street bear icon

Investors should be bearish about investing in Cognizant Technology Solutions Co. for these reasons:

  • Despite the positive analyst sentiment, the stock has a consensus rating of "Hold" and an average price target of $76.61, indicating limited upside potential according to market expectations.
  • Insiders own only 0.26% of the company's stock, which may raise concerns about alignment of interests between management and shareholders.
  • The company's 52-week high of $80.27 suggests that the stock may be trading near its peak, potentially limiting short-term gains for investors.
  • With a price-to-earnings ratio of 18.48, the stock may be considered slightly overvalued compared to industry peers, which could deter value-oriented investors.
  • While recent developments have been positive, the stock's performance may be subject to volatility in the broader market or industry-specific challenges.

This page (NASDAQ:CTSH) was last updated on 9/18/2024 by MarketBeat.com Staff
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