Get in on Cognizant Technology Solutions Corporation’s (CTSH) buy-in window today!

Cognizant Technology Solutions Corporation (NASDAQ: CTSH) stock fell -3.03% on Friday to $60.08 against a previous-day closing price of $61.96. With 4.04 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.04 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $62.80 whereas the lowest price it dropped to was $60.06. The 52-week range on CTSH shows that it touched its highest point at $93.47 and its lowest point at $60.84 during that stretch. It currently has a 1-year price target of $77.68. With its current market cap of 31.03 billion, CTSH has annualized dividend of $1.08 while the current yield stands at 1.80%. Beta for the stock currently stands at 1.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CTSH was down-trending over the past week, with a drop of -3.14%, but this was down by -10.21% over a month. Three-month performance dropped to -10.97% while six-month performance fell -35.48%. The stock lost -19.37% in the past year, while it has lost -32.28% so far this year. A look at the trailing 12-month EPS for CTSH yields 4.31 with Next year EPS estimates of 5.00. For the next quarter, that number is 1.16. This implies an EPS growth rate of 57.30% for this year and 9.98% for next year. EPS is expected to grow by 10.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.70%.

Float and Shares Shorts:

At present, 520.00 million CTSH shares are outstanding with a float of 516.75 million shares on hand for trading. On Aug 30, 2022, short shares totaled 6.99 million, which was 1.35% higher than short shares on Jul 28, 2022. In addition to Mr. Brian Humphries as the firm’s CEO & Director, Mr. Jan Siegmund serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 92.94% of CTSH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.34% of CTSH, in contrast to 37.48% held by mutual funds. Shares owned by individuals account for 0.74%. As the largest shareholder in CTSH with 7.94% of the stake, The Vanguard Group, Inc. holds 41,130,484 shares worth 41,130,484. A second-largest stockholder of CTSH, Dodge & Cox, holds 27,559,889 shares, controlling over 5.32% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CTSH, holding 25,754,753 shares or 4.97% stake. With a 3.49% stake in CTSH, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 18,075,577 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.98% of CTSH stock, is the second-largest Mutual Fund holder. It holds 15,427,958 shares valued at 974.58 million. Vanguard 500 Index Fund holds 2.25% of the stake in CTSH, owning 11,631,084 shares worth 734.74 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, CTSH reported revenue of $4.91B and operating income of $760.00M. Over the past year, revenue came in at $19.25B while operating income stood at $2.94B. It generated $577.00M net income for the quarter, which came to $2.26B over the last twelve months. The EBITDA in the recently reported quarter was $912.00M and diluted EPS was $1.11. EBITDA for the full year was $3.55B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CTSH since 27 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CTSH analysts setting a high price target of $98.00 and a low target of $55.00, the average target price over the next 12 months is $78.32. Based on these targets, CTSH could surge 63.12% to reach the target high and fall by -8.46% to reach the target low. Reaching the average price target will result in a growth of 30.36% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CTSH will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $4.60 being high and $4.22 being low. For CTSH, this leads to a yearly average estimate of $4.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cognizant Technology Solutions Corporation surprised analysts by $0.04 when it reported $1.14 EPS against a consensus estimate of $1.10. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $1.20 and the low estimate is $1.13. The average estimate for the next quarter is thus $1.16.

Dividends & Yield:

In terms of dividends, CTSH has a current ratio of $1.08, which is $1.08 over the trailing 12-months, while a dividend of $0.81 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CTSH currently yields $1.75. In the past year, CTSH’s dividend yield has been $1.75, but when looking at the stock over the past five years, its yield has been $1.15. Accordingly, CTSH has a current buyback yield of $3.22. This was $3.22 for the TTM, and it was $3.92 for the past five years.

Summary of Insider Activity:

Insiders traded CTSH stock several times over the past three months with 25 Buys and 16 Sells. In these transactions, 50,930 shares were bought while 20,208 shares were sold. The number of buy transactions has increased to 142 while that of sell transactions has risen to 124 over the past year. The total number of shares bought during that period was 297,877 while 133,518 shares were sold.

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