Royal Bank of Canada Reiterates “Sector Perform” Rating for Cognizant Technology Solutions (NASDAQ:CTSH)

Cognizant Technology Solutions (NASDAQ:CTSH)‘s stock had its “sector perform” rating reaffirmed by Royal Bank of Canada in a report issued on Wednesday,Benzinga reports. They presently have a $93.00 target price on the information technology service provider’s stock. Royal Bank of Canada’s price objective suggests a potential upside of 18.37% from the company’s previous close.

CTSH has been the subject of a number of other research reports. Needham & Company LLC reiterated a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday, February 6th. BMO Capital Markets upped their price objective on Cognizant Technology Solutions from $88.00 to $94.00 and gave the company a “market perform” rating in a research note on Thursday, February 6th. StockNews.com raised shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Thursday, February 6th. UBS Group decreased their target price on Cognizant Technology Solutions from $93.00 to $88.00 and set a “neutral” rating on the stock in a research note on Monday, March 17th. Finally, Barclays raised their price objective on Cognizant Technology Solutions from $95.00 to $103.00 and gave the company an “overweight” rating in a report on Monday, February 10th. Fifteen research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Cognizant Technology Solutions has a consensus rating of “Hold” and a consensus price target of $83.71.

Cognizant Technology Solutions Price Performance

Shares of NASDAQ CTSH traded down $0.26 during mid-day trading on Wednesday, hitting $78.57. 618,030 shares of the stock traded hands, compared to its average volume of 3,376,645. The company has a market cap of $38.86 billion, a PE ratio of 17.42, a price-to-earnings-growth ratio of 2.11 and a beta of 1.12. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09. The firm has a 50 day simple moving average of $82.72 and a two-hundred day simple moving average of $79.50. Cognizant Technology Solutions has a twelve month low of $63.79 and a twelve month high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. As a group, equities research analysts forecast that Cognizant Technology Solutions will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions declared that its Board of Directors has initiated a share buyback plan on Tuesday, March 25th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the information technology service provider to reacquire up to 5.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Cognizant Technology Solutions

Institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in Cognizant Technology Solutions in the 4th quarter worth about $527,719,000. National Bank of Canada FI grew its holdings in shares of Cognizant Technology Solutions by 54.6% in the fourth quarter. National Bank of Canada FI now owns 5,633,987 shares of the information technology service provider’s stock worth $433,254,000 after acquiring an additional 1,990,515 shares during the period. AE Industrial Partners LP purchased a new stake in Cognizant Technology Solutions during the fourth quarter valued at $113,088,000. Capital Research Global Investors lifted its holdings in Cognizant Technology Solutions by 98.9% in the fourth quarter. Capital Research Global Investors now owns 2,742,442 shares of the information technology service provider’s stock valued at $210,894,000 after acquiring an additional 1,363,570 shares during the period. Finally, Deutsche Bank AG boosted its position in Cognizant Technology Solutions by 47.8% in the fourth quarter. Deutsche Bank AG now owns 3,303,355 shares of the information technology service provider’s stock worth $254,028,000 after purchasing an additional 1,068,420 shares during the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

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.