Cognizant Technology Solutions (NASDAQ:CTSH) Reaches New 1-Year High After Earnings Beat

Cognizant Technology Solutions Co. (NASDAQ:CTSH) shares reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $83.97 and last traded at $83.54, with a volume of 3639889 shares changing hands. The stock had previously closed at $82.90.

The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.60% and a return on equity of 17.08%.

Cognizant Technology Solutions Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th will be issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.42%. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Tuesday, February 18th. Cognizant Technology Solutions’s payout ratio is 26.55%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on CTSH shares. Royal Bank of Canada increased their target price on shares of Cognizant Technology Solutions from $82.00 to $93.00 and gave the stock a “sector perform” rating in a research note on Thursday. Mizuho lifted their price target on shares of Cognizant Technology Solutions from $83.00 to $84.00 and gave the company a “neutral” rating in a research note on Friday, November 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday. Barclays upgraded shares of Cognizant Technology Solutions from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $80.00 to $95.00 in a research report on Tuesday, December 17th. Finally, UBS Group lifted their price objective on Cognizant Technology Solutions from $83.00 to $86.00 and gave the stock a “neutral” rating in a report on Monday. Sixteen analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $83.22.

Insider Activity at Cognizant Technology Solutions

In related news, CAO John Sunshin Kim sold 5,000 shares of the stock in a transaction dated Tuesday, December 3rd. The shares were 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 of the company’s stock, valued at $3,126,052.42. This represents a 11.36 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Insiders own 0.26% of the company’s stock.

Institutional Trading of Cognizant Technology Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Addison Advisors LLC grew its holdings in shares of Cognizant Technology Solutions by 127.7% in the 3rd quarter. Addison Advisors LLC now owns 337 shares of the information technology service provider’s stock worth $26,000 after acquiring an additional 189 shares during the period. Duncker Streett & Co. Inc. acquired a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at approximately $28,000. Ashton Thomas Securities LLC purchased a new stake in Cognizant Technology Solutions in the 3rd quarter valued at approximately $30,000. Trust Co. of Vermont lifted its position in shares of Cognizant Technology Solutions by 188.4% in 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, Pinnacle Bancorp Inc. lifted its holdings in Cognizant Technology Solutions by 47.4% in the 3rd quarter. Pinnacle Bancorp Inc. now owns 454 shares of the information technology service provider’s stock valued at $35,000 after purchasing an additional 146 shares in the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Up 4.2 %

The firm’s 50 day moving average is $79.31 and its 200-day moving average is $77.45. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.08. The firm has a market cap of $43.18 billion, a PE ratio of 19.27, a P/E/G ratio of 2.21 and a beta of 1.07.

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.