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Cognizant Technology Solutions (NASDAQ:CTSH) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Financial News Live · Feb 2, 2023 18:03

Cognizant Technology Solutions (NASDAQ:CTSH – Get Rating) issued its earnings results on Thursday. The information technology service provider reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.01, Briefing.com reports. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.78 billion. Cognizant Technology Solutions had a return on equity of 19.55% and a net margin of 12.11%. Cognizant Technology Solutions's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.10 earnings per share. Cognizant Technology Solutions updated its Q1 2023 guidance to EPS.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH traded up $1.82 during trading on Thursday, hitting $70.66. The company's stock had a trading volume of 5,871,030 shares, compared to its average volume of 5,322,224. The company has a quick ratio of 2.27, a current ratio of 2.27 and a debt-to-equity ratio of 0.05. The firm has a 50 day moving average price of $60.23 and a 200 day moving average price of $61.81. The firm has a market cap of $36.31 billion, a P/E ratio of 15.62, a price-to-earnings-growth ratio of 1.30 and a beta of 1.07. Cognizant Technology Solutions has a 52 week low of $51.33 and a 52 week high of $93.47.

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Insiders Place Their Bets

In other Cognizant Technology Solutions news, Director Leo S. Jr. Mackay sold 3,300 shares of Cognizant Technology Solutions stock in a transaction that occurred on Monday, November 7th. The stock was sold at an average price of $52.79, for a total value of $174,207.00. Following the transaction, the director now directly owns 28,310 shares of the company's stock, valued at approximately $1,494,484.90. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.34% of the company's stock.

Institutional Trading of Cognizant Technology Solutions

Several institutional investors have recently modified their holdings of CTSH. Retirement Systems of Alabama grew its holdings in shares of Cognizant Technology Solutions by 20.4% during the 3rd quarter. Retirement Systems of Alabama now owns 1,236,983 shares of the information technology service provider's stock worth $71,052,000 after purchasing an additional 209,207 shares in the last quarter. Prudential Financial Inc. grew its holdings in shares of Cognizant Technology Solutions by 23.1% during the 1st quarter. Prudential Financial Inc. now owns 1,055,624 shares of the information technology service provider's stock worth $94,657,000 after purchasing an additional 198,263 shares in the last quarter. Eaton Vance Management grew its holdings in shares of Cognizant Technology Solutions by 275.2% during the 1st quarter. Eaton Vance Management now owns 241,646 shares of the information technology service provider's stock worth $21,669,000 after purchasing an additional 177,241 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec boosted its stake in Cognizant Technology Solutions by 64.8% in the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 412,937 shares of the information technology service provider's stock valued at $37,028,000 after buying an additional 162,396 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its stake in Cognizant Technology Solutions by 84.4% in the 1st quarter. Canada Pension Plan Investment Board now owns 269,207 shares of the information technology service provider's stock valued at $24,140,000 after buying an additional 123,220 shares in the last quarter. Institutional investors and hedge funds own 90.12% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CTSH. TheStreet raised Cognizant Technology Solutions from a "c+" rating to a "b-" rating in a report on Tuesday. Bank of America cut Cognizant Technology Solutions from a "neutral" rating to an "underperform" rating and set a $57.00 price target on the stock. in a report on Monday, January 9th. Morgan Stanley upped their price target on Cognizant Technology Solutions from $60.00 to $65.00 and gave the company an "equal weight" rating in a report on Friday, January 27th. StockNews.com began coverage on shares of Cognizant Technology Solutions in a research note on Wednesday, October 12th. They set a "buy" rating on the stock. Finally, Robert W. Baird cut their target price on shares of Cognizant Technology Solutions from $70.00 to $66.00 in a research note on Thursday, November 3rd. Five investment analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat.com, Cognizant Technology Solutions currently has an average rating of "Hold" and an average target price of $69.20.

About Cognizant Technology Solutions

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Cognizant Technology Solutions Corp. engages in the provision of information technology, consulting, and business process outsourcing services. It operates through the following business segments: Financial Services, Healthcare, Products and Resources, and Communications, Media, and Technology. The Financial Services segment consists of banking and insurance services.