Cognizant Technology Solutions (NASDAQ:CTSH) Shares Gap Up on Better-Than-Expected Earnings

Posted by Defense World Staff on May 5th, 2023

Cognizant Technology Solutions Co. (NASDAQ:CTSH – Get Rating) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $58.88, but opened at $62.20. Cognizant Technology Solutions shares last traded at $63.78, with a volume of 810,573 shares.

The information technology service provider reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.06. The firm had revenue of $4.81 billion during the quarter, compared to analysts’ expectations of $4.73 billion. Cognizant Technology Solutions had a return on equity of 18.92% and a net margin of 11.79%. The company’s quarterly revenue was down .3% compared to the same quarter last year. During the same period in the previous year, the business posted $1.08 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on CTSH. Moffett Nathanson cut Cognizant Technology Solutions from a “market perform” rating to an “underperform” rating and lowered their price target for the company from $70.00 to $60.00 in a research note on Thursday, January 19th. TheStreet raised Cognizant Technology Solutions from a “c+” rating to a “b-” rating in a research note on Tuesday, January 31st. Robert W. Baird cut Cognizant Technology Solutions from an “outperform” rating to a “neutral” rating and upped their price target for the company from $66.00 to $68.00 in a research note on Friday, February 3rd. Barclays upped their price target on Cognizant Technology Solutions from $45.00 to $53.00 and gave the company an “underweight” rating in a research note on Monday, February 6th. Finally, HSBC upgraded Cognizant Technology Solutions from a “hold” rating to a “buy” rating and set a $75.00 price objective for the company in a research report on Thursday. Five equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $69.55.

Institutional Investors Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in CTSH. MV Capital Management Inc. raised its stake in shares of Cognizant Technology Solutions by 98.1% during the 1st quarter. MV Capital Management Inc. now owns 410 shares of the information technology service provider’s stock worth $25,000 after purchasing an additional 203 shares in the last quarter. Neo Ivy Capital Management raised its stake in Cognizant Technology Solutions by 75.6% in the 3rd quarter. Neo Ivy Capital Management now owns 504 shares of the information technology service provider’s stock valued at $29,000 after acquiring an additional 217 shares during the period. Vigilant Capital Management LLC bought a new stake in Cognizant Technology Solutions in the 1st quarter valued at $37,000. Harvest Fund Management Co. Ltd raised its stake in Cognizant Technology Solutions by 613.9% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 721 shares of the information technology service provider’s stock valued at $41,000 after acquiring an additional 620 shares during the period. Finally, Zions Bancorporation N.A. raised its stake in Cognizant Technology Solutions by 55.2% in the 3rd quarter. Zions Bancorporation N.A. now owns 731 shares of the information technology service provider’s stock valued at $42,000 after acquiring an additional 260 shares during the period. Institutional investors own 90.12% of the company’s stock.

Cognizant Technology Solutions Trading Up 6.8 %

The business has a 50 day moving average of $60.19 and a two-hundred day moving average of $60.67. The company has a current ratio of 2.17, a quick ratio of 2.17 and a debt-to-equity ratio of 0.05. The firm has a market cap of $32.01 billion, a P/E ratio of 14.22, a PEG ratio of 1.22 and a beta of 1.10.

About Cognizant Technology Solutions

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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.