Cognizant Technology Solutions (NASDAQ:CTSH) Posts Earnings Results, Beats Expectations By $0.11 EPS

Cognizant Technology Solutions (NASDAQ:CTSH) posted its earnings results on Wednesday. The information technology service provider reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.11, Briefing.com reports. The firm had revenue of $5.04 billion for the quarter, compared to analysts’ expectations of $4.99 billion. Cognizant Technology Solutions had a return on equity of 17.37% and a net margin of 11.60%. The business’s revenue was up 3.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.16 earnings per share. Cognizant Technology Solutions updated its FY24 guidance to $4.63-4.67 EPS and its Q4 2024 guidance to EPS.

Cognizant Technology Solutions Trading Down 1.2 %

Cognizant Technology Solutions stock traded down $0.89 during midday trading on Friday, reaching $73.70. The stock had a trading volume of 1,090,475 shares, compared to its average volume of 3,812,881. Cognizant Technology Solutions has a 52-week low of $62.14 and a 52-week 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. The firm has a market cap of $36.53 billion, a price-to-earnings ratio of 16.50, a price-to-earnings-growth ratio of 2.09 and a beta of 1.05. The company has a fifty day moving average of $76.40 and a 200 day moving average of $71.94.

Cognizant Technology Solutions Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Investors of record on Tuesday, November 19th will be paid a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, November 19th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.63%. Cognizant Technology Solutions’s dividend payout ratio is presently 26.55%.

Insider Activity at Cognizant Technology Solutions

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

Analyst Upgrades and Downgrades

CTSH has been the topic of several research analyst reports. Barclays boosted their price target on shares of Cognizant Technology Solutions from $75.00 to $80.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 23rd. Robert W. Baird increased their target price on Cognizant Technology Solutions from $78.00 to $80.00 and gave the stock a “neutral” rating in a research report on Thursday. Bank of America upgraded Cognizant Technology Solutions from an “underperform” rating to a “neutral” rating and lifted their price target for the company from $73.00 to $75.00 in a research report on Wednesday, August 7th. Daiwa America upgraded Cognizant Technology Solutions to a “hold” rating in a report on Tuesday, August 27th. Finally, StockNews.com cut shares of Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a report on Thursday. One equities research analyst has rated the stock with a sell rating, twenty have assigned a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, Cognizant Technology Solutions has an average rating of “Hold” and an average price target of $77.60.

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.