Cognizant Technology Solutions Co. (NASDAQ:CTSH) Sees Significant Growth in Short Interest

Cognizant Technology Solutions Co. (NASDAQ:CTSH) was the target of a large growth in short interest in the month of February. As of February 28th, there was short interest totalling 18,970,000 shares, a growth of 26.1% from the February 13th total of 15,040,000 shares. Based on an average daily trading volume, of 3,420,000 shares, the days-to-cover ratio is presently 5.5 days. Approximately 3.9% of the company’s stock are short sold.

Cognizant Technology Solutions Stock Down 0.5 %

Cognizant Technology Solutions stock traded down $0.44 during midday trading on Tuesday, reaching $79.58. The company’s stock had a trading volume of 2,584,015 shares, compared to its average volume of 3,437,360. The stock’s 50-day simple moving average is $82.46 and its 200-day simple moving average is $79.44. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09. Cognizant Technology Solutions has a 52-week low of $63.79 and a 52-week high of $90.82. The stock has a market capitalization of $39.36 billion, a P/E ratio of 17.65, a PEG ratio of 2.11 and a beta of 1.12.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 EPS for the quarter, beating analysts’ consensus estimates 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, sell-side analysts expect that Cognizant Technology Solutions will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th were issued a $0.31 dividend. The ex-dividend date of this dividend was Tuesday, February 18th. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.56%. Cognizant Technology Solutions’s dividend payout ratio is currently 27.49%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. California State Teachers Retirement System increased its holdings in shares of Cognizant Technology Solutions by 0.8% in the fourth quarter. California State Teachers Retirement System now owns 840,827 shares of the information technology service provider’s stock valued at $64,660,000 after purchasing an additional 6,554 shares during the period. 111 Capital acquired a new position in shares of Cognizant Technology Solutions in the fourth quarter valued at about $1,011,000. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Cognizant Technology Solutions by 257.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 164,857 shares of the information technology service provider’s stock valued at $12,678,000 after purchasing an additional 118,723 shares during the period. NorthCrest Asset Manangement LLC increased its holdings in shares of Cognizant Technology Solutions by 3.5% in the fourth quarter. NorthCrest Asset Manangement LLC now owns 103,765 shares of the information technology service provider’s stock valued at $7,980,000 after purchasing an additional 3,484 shares during the period. Finally, Siemens Fonds Invest GmbH increased its holdings in shares of Cognizant Technology Solutions by 37.0% in the fourth quarter. Siemens Fonds Invest GmbH now owns 22,886 shares of the information technology service provider’s stock valued at $1,760,000 after purchasing an additional 6,184 shares during the period. 92.44% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CTSH. StockNews.com upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Thursday, February 6th. Morgan Stanley lowered their target price on Cognizant Technology Solutions from $85.00 to $80.00 and set an “equal weight” rating for the company 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 report on Thursday, February 6th. Royal Bank of Canada upped their target price 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. Finally, UBS Group lowered their target price on Cognizant Technology Solutions from $93.00 to $88.00 and set a “neutral” rating for the company in a report on Monday. Sixteen analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $83.50.

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.