William Blair Issues Negative Outlook for CTSH Earnings

Cognizant Technology Solutions Co. (NASDAQ:CTSH) – Research analysts at William Blair cut their Q4 2024 earnings estimates for shares of Cognizant Technology Solutions in a note issued to investors on Wednesday, October 30th. William Blair analyst M. Nolan now forecasts that the information technology service provider will post earnings of $1.10 per share for the quarter, down from their prior estimate of $1.17. The consensus estimate for Cognizant Technology Solutions’ current full-year earnings is $4.62 per share. William Blair also issued estimates for Cognizant Technology Solutions’ Q2 2025 earnings at $1.23 EPS, Q3 2025 earnings at $1.26 EPS, FY2025 earnings at $5.00 EPS and FY2026 earnings at $5.34 EPS.

Other equities analysts have also recently issued reports about the stock. The Goldman Sachs Group reissued a “neutral” rating and set a $76.00 price target on shares of Cognizant Technology Solutions in a research report on Thursday, September 12th. TD Cowen boosted their price objective on shares of Cognizant Technology Solutions from $75.00 to $76.00 and gave the company a “hold” rating in a research report on Thursday. Bank of America raised shares of Cognizant Technology Solutions from an “underperform” rating to a “neutral” rating and boosted their price objective for the company from $73.00 to $75.00 in a research report on Wednesday, August 7th. Royal Bank of Canada boosted their price objective on shares of Cognizant Technology Solutions from $81.00 to $82.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 28th. Finally, Robert W. Baird boosted their price objective on shares of Cognizant Technology Solutions from $78.00 to $80.00 and gave the company a “neutral” rating in a research report on Thursday. One investment analyst has rated the stock with a sell rating, twenty have assigned a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, Cognizant Technology Solutions presently has a consensus rating of “Hold” and an average target price of $77.70.

Cognizant Technology Solutions Trading Up 0.0 %

Shares of NASDAQ CTSH opened at $74.61 on Friday. The company’s fifty day moving average is $76.36 and its 200-day moving average is $71.99. The stock has a market cap of $36.98 billion, a price-to-earnings ratio of 16.51, a P/E/G ratio of 2.09 and a beta of 1.05. Cognizant Technology Solutions has a twelve month low of $62.14 and a twelve month high of $80.27. The company has a quick ratio of 2.46, a current ratio of 2.46 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, October 30th. The information technology service provider reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $1.14 by $0.11. The firm had revenue of $5.04 billion during the quarter, compared to analyst estimates of $4.99 billion. Cognizant Technology Solutions had a net margin of 11.60% and a return on equity of 17.37%. The business’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.16 EPS.

Institutional Investors Weigh In On Cognizant Technology Solutions

Large investors have recently modified their holdings of the company. Blair William & Co. IL increased its position in shares of Cognizant Technology Solutions by 2.5% during the first quarter. Blair William & Co. IL now owns 16,795 shares of the information technology service provider’s stock worth $1,231,000 after buying an additional 412 shares during the period. Duality Advisers LP acquired a new stake in Cognizant Technology Solutions in the first quarter worth $1,687,000. Norden Group LLC acquired a new stake in Cognizant Technology Solutions in the first quarter worth $233,000. State Board of Administration of Florida Retirement System grew its holdings in Cognizant Technology Solutions by 8.9% in the first quarter. State Board of Administration of Florida Retirement System now owns 650,385 shares of the information technology service provider’s stock worth $47,667,000 after purchasing an additional 53,061 shares during the period. Finally, Cetera Investment Advisers grew its holdings in Cognizant Technology Solutions by 135.4% in the first quarter. Cetera Investment Advisers now owns 33,305 shares of the information technology service provider’s stock worth $2,441,000 after purchasing an additional 19,157 shares during the period. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cognizant Technology Solutions

In related news, CEO Ravi Kumar Singisetti sold 6,728 shares of the stock in a transaction that occurred on Tuesday, August 6th. The shares were sold at an average price of $73.66, for a total value of $495,584.48. Following the completion of the transaction, the chief executive officer now owns 46,427 shares of the company’s stock, valued at $3,419,812.82. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.26% of the stock is owned by insiders.

Cognizant Technology Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 27th. Investors of record on Tuesday, November 19th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.61%. The ex-dividend date of this dividend is Tuesday, November 19th. Cognizant Technology Solutions’s payout ratio is 26.55%.

About Cognizant Technology Solutions

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.