Cognizant Technology Solutions Co. Declares Quarterly Dividend of $0.29 (NASDAQ:CTSH)

Cognizant Technology Solutions Co. (NASDAQ:CTSH) announced a quarterly dividend on Wednesday, November 1st, NASDAQ reports. Shareholders of record on Tuesday, November 21st will be given a dividend of 0.29 per share by the information technology service provider on Thursday, November 30th. This represents a $1.16 annualized dividend and a yield of 1.67%. The ex-dividend date is Monday, November 20th.

Cognizant Technology Solutions has increased its dividend by an average of 10.5% per year over the last three years and has raised its dividend every year for the last 4 years. Cognizant Technology Solutions has a dividend payout ratio of 25.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $4.61 per share next year, which means the company should continue to be able to cover its $1.16 annual dividend with an expected future payout ratio of 25.2%.

Cognizant Technology Solutions Price Performance

CTSH stock opened at $69.53 on Friday. Cognizant Technology Solutions has a 52-week low of $54.25 and a 52-week high of $72.71. The stock has a market cap of $34.86 billion, a price-to-earnings ratio of 16.92, a price-to-earnings-growth ratio of 1.77 and a beta of 1.08. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.05. The business has a fifty day moving average of $67.22 and a two-hundred day moving average of $66.48.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, November 1st. The information technology service provider reported $1.16 EPS for the quarter, topping the consensus estimate of $1.08 by $0.08. Cognizant Technology Solutions had a return on equity of 17.54% and a net margin of 10.75%. The firm had revenue of $4.90 billion during the quarter, compared to analysts’ expectations of $4.91 billion. During the same period in the previous year, the firm posted $1.17 EPS. Cognizant Technology Solutions’s revenue for the quarter was up .8% on a year-over-year basis. As a group, research analysts anticipate that Cognizant Technology Solutions will post 4.4 earnings per share for the current year.

Institutional Trading of Cognizant Technology Solutions

Several institutional investors and hedge funds have recently made changes to their positions in the company. Parkside Financial Bank & Trust raised its stake in Cognizant Technology Solutions by 33.5% during the 2nd quarter. Parkside Financial Bank & Trust now owns 630 shares of the information technology service provider’s stock valued at $41,000 after acquiring an additional 158 shares during the last quarter. Resurgent Financial Advisors LLC purchased a new stake in Cognizant Technology Solutions during the 4th quarter valued at approximately $45,000. Money Concepts Capital Corp raised its stake in Cognizant Technology Solutions by 42.6% during the 4th quarter. Money Concepts Capital Corp now owns 854 shares of the information technology service provider’s stock valued at $49,000 after acquiring an additional 255 shares during the last quarter. Zions Bancorporation N.A. raised its stake in Cognizant Technology Solutions by 29.9% during the 1st quarter. Zions Bancorporation N.A. now owns 651 shares of the information technology service provider’s stock valued at $58,000 after acquiring an additional 150 shares during the last quarter. Finally, KB Financial Partners LLC purchased a new stake in Cognizant Technology Solutions during the 1st quarter valued at approximately $120,000. 90.77% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Royal Bank of Canada boosted their target price on Cognizant Technology Solutions from $66.00 to $74.00 and gave the stock a “sector perform” rating in a research note on Thursday, August 3rd. UBS Group started coverage on Cognizant Technology Solutions in a report on Tuesday, November 7th. They set a “neutral” rating and a $70.00 price target for the company. Morgan Stanley decreased their price target on Cognizant Technology Solutions from $68.00 to $65.00 and set an “equal weight” rating for the company in a report on Thursday, November 2nd. Wedbush reaffirmed an “outperform” rating and set a $75.00 price target on shares of Cognizant Technology Solutions in a report on Friday, August 11th. Finally, Barclays lifted their price target on Cognizant Technology Solutions from $53.00 to $61.00 and gave the stock an “underweight” rating in a report on Tuesday, July 25th. Four analysts have rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat, Cognizant Technology Solutions presently has a consensus rating of “Hold” and an average price target of $68.94.

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.