Cognizant Technology Solutions Corporation (CTSH) Rating Increased to Hold at Zacks Investment Research

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Cognizant reported lower-than-expected fourth quarter 2016 results. However, Cognizant’s announcement of enhanced focus on expanding digital capabilities and an extensive capital buyback program overshadowed dismal quarterly performance. Cognizant remains well positioned to benefit from strong demand from digitization of businesses. High quality, lower cost technology services and strategic partnership with the likes of Microsoft and SAP SE are big positives for the company. Over the past six months, the company shares have outperformed the Zacks categorized business Software Service/BPO Industry. However, macroeconomic headwinds and sluggish spending levels in its healthcare and financial sectors have emerged as big concerns. Intense competition in the IT service industry, rising wages and customer concentration are the other challenges. “

Several other equities analysts have also issued reports on CTSH. Oppenheimer Holdings, Inc. restated an “outperform” rating and set a $60.00 price target (down from $68.00) on shares of Cognizant Technology Solutions Corporation in a research report on Thursday, February 9th. Vetr upgraded Cognizant Technology Solutions Corporation from a “buy” rating to a “strong-buy” rating and set a $61.94 price target on the stock in a research report on Thursday, December 1st. Cantor Fitzgerald restated an “overweight” rating and set a $67.00 price target on shares of Cognizant Technology Solutions Corporation in a research report on Friday, February 10th. Deutsche Bank AG restated a “buy” rating and set a $69.00 price target on shares of Cognizant Technology Solutions Corporation in a research report on Friday, October 21st. Finally, Jefferies Group LLC restated a “buy” rating and set a $63.00 price target on shares of Cognizant Technology Solutions Corporation in a research report on Wednesday, November 30th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eighteen have assigned a buy rating to the company’s stock. Cognizant Technology Solutions Corporation has an average rating of “Buy” and an average target price of $62.43.

Analyst Recommendations for Cognizant Technology Solutions Corporation (NASDAQ:CTSH)

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) opened at 57.36 on Monday. The company has a market cap of $34.82 billion, a P/E ratio of 22.49 and a beta of 1.28. The stock’s 50 day moving average price is $56.00 and its 200 day moving average price is $54.98. Cognizant Technology Solutions Corporation has a 12-month low of $45.44 and a 12-month high of $63.23.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 8th. The information technology service provider reported $0.87 EPS for the quarter, beating the consensus estimate of $0.86 by $0.01. Cognizant Technology Solutions Corporation had a return on equity of 18.83% and a net margin of 11.52%. The firm had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.49 billion. During the same period in the prior year, the company earned $0.80 EPS. The company’s revenue was up 7.1% on a year-over-year basis. On average, analysts forecast that Cognizant Technology Solutions Corporation will post $3.65 EPS for the current year.

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In related news, CFO Karen Mcloughlin sold 1,873 shares of Cognizant Technology Solutions Corporation stock in a transaction on Monday, November 28th. The stock was sold at an average price of $58.16, for a total transaction of $108,933.68. Following the transaction, the chief financial officer now directly owns 40,741 shares in the company, valued at $2,369,496.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Malcolm Frank sold 666 shares of Cognizant Technology Solutions Corporation stock in a transaction on Monday, December 5th. The shares were sold at an average price of $54.67, for a total value of $36,410.22. Following the transaction, the vice president now owns 4,520 shares in the company, valued at $247,108.40. The disclosure for this sale can be found here. Insiders sold 57,466 shares of company stock valued at $3,201,816 in the last ninety days. 0.81% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in CTSH. Gradient Investments LLC increased its position in Cognizant Technology Solutions Corporation by 0.6% in the third quarter. Gradient Investments LLC now owns 5,385 shares of the information technology service provider’s stock valued at $257,000 after buying an additional 34 shares during the period. Gratus Capital LLC increased its position in Cognizant Technology Solutions Corporation by 0.8% in the fourth quarter. Gratus Capital LLC now owns 5,039 shares of the information technology service provider’s stock valued at $282,000 after buying an additional 39 shares during the period. Wedbush Securities Inc. increased its position in Cognizant Technology Solutions Corporation by 0.4% in the second quarter. Wedbush Securities Inc. now owns 18,283 shares of the information technology service provider’s stock valued at $1,047,000 after buying an additional 75 shares during the period. Barrington Strategic Wealth Management Group LLC increased its position in Cognizant Technology Solutions Corporation by 0.6% in the fourth quarter. Barrington Strategic Wealth Management Group LLC now owns 14,050 shares of the information technology service provider’s stock valued at $787,000 after buying an additional 80 shares during the period. Finally, Woodstock Corp increased its position in Cognizant Technology Solutions Corporation by 0.8% in the third quarter. Woodstock Corp now owns 10,170 shares of the information technology service provider’s stock valued at $485,000 after buying an additional 85 shares during the period. Institutional investors own 85.63% of the company’s stock.

Cognizant Technology Solutions Corporation Company Profile

Cognizant Technology Solutions Corporation is a provider of information technology (IT), consulting and business process services. The Company operates through four segments: Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies; Manufacturing, Retail and Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services, and Other, which includes communications, manufacturing/retail/logistics, and high technology.

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