Cognizant Technology Solutions (NASDAQ:CTSH) Announces Earnings Results

Cognizant Technology Solutions (NASDAQ:CTSH) announced its earnings results on Wednesday. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.09, Zacks reports. Cognizant Technology Solutions had a return on equity of 17.08% and a net margin of 11.60%. Cognizant Technology Solutions updated its FY 2025 guidance to 4.900-5.060 EPS and its Q1 2025 guidance to EPS.

Cognizant Technology Solutions Trading Up 4.2 %

NASDAQ:CTSH opened at $87.08 on Friday. Cognizant Technology Solutions has a 1 year low of $63.79 and a 1 year high of $87.61. The business has a fifty day moving average of $79.44 and a 200-day moving average of $77.52. The company has a debt-to-equity ratio of 0.08, a quick ratio of 2.23 and a current ratio of 2.23. The stock has a market cap of $43.17 billion, a price-to-earnings ratio of 19.30, a PEG ratio of 2.21 and a beta of 1.07.

Cognizant Technology Solutions Increases Dividend

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

Analyst Ratings Changes

A number of research analysts have commented on CTSH shares. Morgan Stanley increased their price objective on shares of Cognizant Technology Solutions from $80.00 to $85.00 and gave the company an “equal weight” rating in a research note on Thursday. UBS Group increased their price target on shares of Cognizant Technology Solutions from $83.00 to $86.00 and gave the stock a “neutral” rating in a research report on Monday. BMO Capital Markets boosted their price objective on Cognizant Technology Solutions from $88.00 to $94.00 and gave the company a “market perform” rating in a report on Thursday. Needham & Company LLC reaffirmed a “hold” rating on shares of Cognizant Technology Solutions in a report on Thursday. Finally, Barclays upgraded Cognizant Technology Solutions from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $80.00 to $95.00 in a report on Tuesday, December 17th. Sixteen research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $83.22.

Insider Buying and Selling

In other Cognizant Technology Solutions news, CAO John Sunshin Kim sold 5,000 shares of the stock in a transaction 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 directly owns 39,022 shares of the company’s stock, valued at approximately $3,126,052.42. This trade represents a 11.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.26% 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.