Cognizant Technology Solutions (NASDAQ:CTSH) Hits New 12-Month High – Here’s Why

Cognizant Technology Solutions Co. (NASDAQ:CTSH)’s share price hit a new 52-week high during trading on Tuesday . The company 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

A number of brokerages recently commented on CTSH. Barclays raised their target price on Cognizant Technology Solutions from $95.00 to $103.00 and gave the stock an “overweight” rating in a report on Monday, February 10th. Morgan Stanley raised their target price 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. Robert W. Baird raised their target price on Cognizant Technology Solutions from $78.00 to $80.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. BMO Capital Markets raised 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. Finally, Royal Bank of Canada raised their price target on Cognizant Technology Solutions from $82.00 to $93.00 and gave the company a “sector perform” rating in a report on Thursday, February 6th. Sixteen equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $83.67.

Cognizant Technology Solutions Trading Down 1.0 %

The stock has a market cap of $43.40 billion, a PE ratio of 19.41, a price-to-earnings-growth ratio of 2.14 and a beta of 1.07. 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 stock has a 50-day moving average price of $80.87 and a two-hundred day moving average price of $78.42.

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, topping 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%. Sell-side analysts forecast that Cognizant Technology Solutions Co. will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 26th. Investors of record on Tuesday, February 18th will be given a $0.31 dividend. The ex-dividend date of this dividend is Tuesday, February 18th. This represents a $1.24 annualized dividend and a yield of 1.42%. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 27.49%.

Insider Buying and Selling

In other Cognizant Technology Solutions 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 owns 39,022 shares in the company, valued at $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 Securities & Exchange Commission, which is available at this link. 0.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Addison Advisors LLC boosted its position in shares of Cognizant Technology Solutions by 127.7% during the third quarter. Addison Advisors LLC now owns 337 shares of the information technology service provider’s stock valued at $26,000 after buying an additional 189 shares during the period. Duncker Streett & Co. Inc. purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $28,000. Ashton Thomas Securities LLC bought a new stake in shares of Cognizant Technology Solutions during the third quarter valued at approximately $30,000. Trust Co. of Vermont raised its stake in shares of Cognizant Technology Solutions by 188.4% during the fourth quarter. Trust Co. of Vermont now owns 447 shares of the information technology service provider’s stock valued at $34,000 after acquiring an additional 292 shares in the last quarter. Finally, SBI Securities Co. Ltd. bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $36,000. Hedge funds and other institutional investors own 92.44% of the company’s stock.

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.