Cognizant Technology Solutions Co. (NASDAQ:CTSH) Sees Large Drop in Short Interest

Cognizant Technology Solutions Co. (NASDAQ:CTSH – Get Rating) was the target of a large decline in short interest in the month of November. As of November 15th, there was short interest totalling 6,470,000 shares, a decline of 17.1% from the October 31st total of 7,800,000 shares. Approximately 1.3% of the shares of the company are short sold. Based on an average daily trading volume, of 3,700,000 shares, the days-to-cover ratio is currently 1.7 days.

Insider Activity

In other news, Director Leo S. Jr. Mackay sold 3,300 shares of the business’s stock in a transaction dated Monday, November 7th. The stock was sold at an average price of $52.79, for a total value of $174,207.00. Following the completion of the transaction, the director now owns 28,310 shares of the company’s stock, valued at approximately $1,494,484.90. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, Director Zein Abdalla sold 4,368 shares of Cognizant Technology Solutions stock in a transaction dated Friday, September 9th. The stock was sold at an average price of $65.44, for a total value of $285,841.92. Following the completion of the transaction, the director now owns 13,556 shares in the company, valued at approximately $887,104.64. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Leo S. Jr. Mackay sold 3,300 shares of Cognizant Technology Solutions stock in a transaction dated Monday, November 7th. The shares were sold at an average price of $52.79, for a total value of $174,207.00. Following the completion of the transaction, the director now owns 28,310 shares of the company’s stock, valued at approximately $1,494,484.90. The disclosure for this sale can be found here. Insiders own 0.34% of the company’s stock.

Institutional Trading of Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of the stock. Robeco Institutional Asset Management B.V. raised its stake in shares of Cognizant Technology Solutions by 9.3% in the third quarter. Robeco Institutional Asset Management B.V. now owns 606,482 shares of the information technology service provider’s stock valued at $34,838,000 after acquiring an additional 51,750 shares in the last quarter. Toroso Investments LLC increased its holdings in Cognizant Technology Solutions by 4.1% in the third quarter. Toroso Investments LLC now owns 16,399 shares of the information technology service provider’s stock valued at $942,000 after buying an additional 648 shares during the last quarter. B. Riley Wealth Advisors Inc. purchased a new position in Cognizant Technology Solutions in the third quarter valued at $281,000. Teachers Retirement System of The State of Kentucky purchased a new position in Cognizant Technology Solutions in the third quarter valued at $2,748,000. Finally, Sunbelt Securities Inc. increased its holdings in Cognizant Technology Solutions by 2.4% in the third quarter. Sunbelt Securities Inc. now owns 10,023 shares of the information technology service provider’s stock valued at $576,000 after buying an additional 236 shares during the last quarter. 90.67% of the stock is currently owned by institutional investors and hedge funds.

Cognizant Technology Solutions Trading Down 0.4 %

NASDAQ:CTSH traded down $0.23 during trading hours on Friday, reaching $62.39. 3,132,177 shares of the stock were exchanged, compared to its average volume of 3,965,471. 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 business has a 50-day moving average of $59.16 and a two-hundred day moving average of $64.65. Cognizant Technology Solutions has a twelve month low of $51.33 and a twelve month high of $93.47. The company has a market capitalization of $32.06 billion, a price-to-earnings ratio of 13.86, a PEG ratio of 1.27 and a beta of 1.04.

Cognizant Technology Solutions (NASDAQ:CTSH – Get Rating) last released its quarterly earnings results on Wednesday, November 2nd. The information technology service provider reported $1.17 EPS for the quarter, hitting analysts’ consensus estimates of $1.17. Cognizant Technology Solutions had a return on equity of 19.55% and a net margin of 12.11%. The company had revenue of $4.86 billion for the quarter, compared to analysts’ expectations of $5.01 billion. On average, equities analysts predict that Cognizant Technology Solutions will post 4.46 EPS for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, November 29th. Stockholders of record on Friday, November 18th were paid a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.73%. The ex-dividend date was Thursday, November 17th. Cognizant Technology Solutions’s payout ratio is currently 24.00%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on CTSH shares. BMO Capital Markets lowered Cognizant Technology Solutions from an “outperform” rating to a “market perform” rating and cut their price objective for the stock from $73.00 to $65.00 in a research note on Thursday, November 3rd. Morgan Stanley cut their price objective on Cognizant Technology Solutions from $65.00 to $60.00 and set an “equal weight” rating for the company in a research note on Thursday, November 3rd. Bank of America lowered Cognizant Technology Solutions from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $81.00 to $68.00 in a research note on Friday, October 21st. William Blair lowered Cognizant Technology Solutions from an “outperform” rating to a “market perform” rating in a research note on Thursday, November 3rd. Finally, Citigroup cut their price objective on Cognizant Technology Solutions from $77.00 to $62.00 and set a “neutral” rating for the company in a research note on Thursday, November 3rd. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and three have given a buy rating to the stock. According to MarketBeat, Cognizant Technology Solutions presently has an average rating of “Hold” and an average price target of $73.16.

About Cognizant Technology Solutions

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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; Healthcare; Products and Resources; and Communications, Media and Technology.

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