Citigroup Downgrades Cognizant Technology Solutions (NASDAQ:CTSH) to Neutral

Citigroup lowered shares of Cognizant Technology Solutions (NASDAQ:CTSH) from a buy rating to a neutral rating in a research note released on Friday, Price Targets.com reports. Citigroup currently has $95.00 price objective on the information technology service provider’s stock, up from their prior price objective of $93.00.

A number of other analysts have also issued reports on the company. BMO Capital Markets boosted their target price on Cognizant Technology Solutions from $86.00 to $92.00 and gave the company an outperform rating in a research report on Friday, November 19th. The Goldman Sachs Group initiated coverage on shares of Cognizant Technology Solutions in a research report on Sunday, January 9th. They set a buy rating and a $104.00 target price on the stock. Royal Bank of Canada raised their target price on shares of Cognizant Technology Solutions from $90.00 to $91.00 and gave the stock an outperform rating in a research report on Friday, November 19th. Morgan Stanley downgraded shares of Cognizant Technology Solutions from an overweight rating to an equal weight rating and raised their target price for the company from $91.00 to $95.00 in a research note on Monday, January 10th. Finally, Barclays lifted their price target on shares of Cognizant Technology Solutions from $73.00 to $78.00 and gave the company an underweight rating in a report on Friday, October 29th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of Buy and an average target price of $88.86.

Shares of CTSH opened at $87.20 on Friday. The business has a fifty day moving average of $83.68 and a 200 day moving average of $77.82. Cognizant Technology Solutions has a one year low of $66.19 and a one year high of $92.03. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.11 and a quick ratio of 2.11. The firm has a market capitalization of $45.80 billion, a P/E ratio of 24.63, a PEG ratio of 1.76 and a beta of 1.15.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Tuesday, October 26th. The information technology service provider reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.01. Cognizant Technology Solutions had a return on equity of 17.55% and a net margin of 10.48%. The company had revenue of $4.74 billion for the quarter, compared to analysts’ expectations of $4.73 billion. During the same quarter in the prior year, the firm earned $0.97 earnings per share. Cognizant Technology Solutions’s revenue was up 11.8% compared to the same quarter last year. Analysts expect that Cognizant Technology Solutions will post 4.06 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, November 30th. Shareholders of record on Friday, November 19th were paid a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.10%. The ex-dividend date was Thursday, November 18th. Cognizant Technology Solutions’s payout ratio is 27.12%.

In other news, EVP Andrew J. Stafford sold 6,422 shares of the company’s stock in a transaction that occurred on Thursday, December 9th. The stock was sold at an average price of $80.87, for a total transaction of $519,347.14. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.31% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Iowa State Bank grew its position in Cognizant Technology Solutions by 26.6% during the third quarter. Iowa State Bank now owns 25,001 shares of the information technology service provider’s stock worth $1,855,000 after buying an additional 5,246 shares during the period. Triodos Investment Management BV increased its stake in Cognizant Technology Solutions by 5.1% during the 3rd quarter. Triodos Investment Management BV now owns 331,340 shares of the information technology service provider’s stock worth $24,589,000 after buying an additional 16,000 shares during the period. Pensionfund Sabic boosted its holdings in shares of Cognizant Technology Solutions by 17.9% in the 3rd quarter. Pensionfund Sabic now owns 33,000 shares of the information technology service provider’s stock valued at $2,449,000 after buying an additional 5,000 shares during the period. Private Trust Co. NA acquired a new position in shares of Cognizant Technology Solutions in the 3rd quarter valued at about $201,000. Finally, Linscomb & Williams Inc. lifted its position in Cognizant Technology Solutions by 5.8% in the 3rd quarter. Linscomb & Williams Inc. now owns 22,692 shares of the information technology service provider’s stock valued at $1,684,000 after purchasing an additional 1,243 shares during the last quarter. Hedge funds and other institutional investors own 89.41% of the company’s stock.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corp. engages in the provision of information technology, consulting, and business process outsourcing services. It operates through the following business segments: Financial Services; Healthcare; Products and Resources; and Communications, Media, and Technology. The Financial Services segment consists of banking and insurance services.

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Analyst Recommendations for Cognizant Technology Solutions (NASDAQ:CTSH)

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