Purchase Of Shares In Cognizant Technology Solutions Corporation (CTSH) By Mackay Leo S. Jr.


As of Wednesday close, Cognizant Technology Solutions Corporation’s (NASDAQ:CTSH) stock was up $0.8, moving up 1.35 percent to $60.03. The average number of shares traded per day over the past five days has been 3,729,960 shares. 2 times new highs have been achieved over the past 5 days, with a $0.62 gain in that time frame. In the last twenty days, the average volume was 4,412,260, while in the previous 50 days, it was 4,043,660.

Since last month, CTSH stock retreated -2.36%. Shares of the company fell to $51.33 on 11/03/22, the lowest level in the past month. A 52-week high of $93.47 was reached on 03/22/22 after having rallying from a 52-week low of $51.33. Since the beginning of this year, CTSH’s stock price has dropped by -32.34% or -$28.69, and marked a new high 4 times. However, the stock has declined by -35.77% since its 52-week high.

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CTSH stock investors should be aware that Cognizant Technology Solutions Corporation (CTSH) stock had its last reported insider trading activity 18 days ago on Nov 07. Mackay Leo S. Jr., the Director of the company, disposed of 3,300 shares for $52.79 on Nov 07. It resulted in a $174,218 divestment by the insider. Abdalla Zein sold 4,368 shares at an average price of $65.44 on Sep 09. The insider now owns 13,556 shares following the transaction. On May 17, Director Patsalos-Fox Michael sold 5,687 shares at $74.40 apiece. The transaction was valued at $423,139.

Valuation Metrics

Right now, Cognizant Technology Solutions Corporation (CTSH) has a P/E ratio of about 13.37. The stock’s beta is 1.06. Besides these, the trailing price-to-sales (P/S) ratio of 1.58, the price-to-book (PB) ratio of 2.59, and the price-to-cash flow ratio of 16.70 may also be considered.

The latest dividend of $0.27 per share was paid out, remained unchanged from last year’s $0.27. On Wednesday February 2 2022, a $0.03 dividend increase was announced.

Financial Health

In the three months ended June 29, Cognizant Technology Solutions Corporation’s quick ratio stood at 2.30, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.05, and the total debt-to-equity ratio was 0.05. On the profitability front, the trailing twelve-month gross margin is 36.40% percent. In the year ended June 29, operating margins totaled 15.60%. Based on annual data, CTSH earned $6.9 billion in gross profit and brought in $18.51 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 16.80%. Return on equity (ROE) for the past 12 months was 19.60%.

In Cognizant Technology Solutions Corporation’s quarter-end financial report for June 29, it reported total debt of $636.0 million against cash and short-term investments of $689.0 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CTSH’s revenue rose 2.33% to $4.91 billion during the quarter, while net income inched up to $4.86 billion. While analysts expected Cognizant Technology Solutions Corporation to report $1.08 quarterly earnings, the actual figure was $1.14 per share, beating the consensus estimate by 5.60%. During the quarter, the company generated $939.0 million in EBITDA. The liabilities of Cognizant Technology Solutions Corporation were 5.39 billion at the end of its most recent quarter ended June 29, and its total debt was $1.57 billion. The value of shareholders’ equity is $513.92 million.

Technical Picture

This quick technical analysis looks at Cognizant Technology Solutions Corporation’s (CTSH) price momentum. With a historical volatility rate of 27.32%, the RSI 9-day stood at 57.64% on 23 November.

With respect to its five-day moving average, the current Cognizant Technology Solutions Corporation price is up by +1.04% percent or $0.62. At present, CTSH shares trade -2.63% below its 20-day simple moving average and -11.36% percent below its 100-day simple moving average. However, the stock is currently trading approximately -3.22% below its SMA50 and -32.68% below its SMA200.

Stochastic coefficient K was 80.02% and Stochastic coefficient D was 73.66%, while ATR was 1.71. Given the Stochastic reading of 94.50% for the 14-day period, the RSI (14) reading has been calculated as 54.08%. As of today, the MACD Oscillator reading stands at -0.04, while the 14-day reading stands at 1.75.

Analyst Ratings

Cognizant Technology Solutions Corporation downgraded its rating on Cognizant Technology Solutions Corporation (NASDAQ: CTSH) to a Mkt perform in a note to investors on November 03, 2022. The analysts firm previously had an Outperform rating on the stock.Cognizant Technology Solutions Corporation (CTSH) has been rated Hold by analysts. According to 2 brokerage firms, CTSH is a sell, and 20 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Cognizant Technology Solutions Corporation stock as buy, with 3 recommending it as overweight.

With a median target price of $63.00, the current consensus forecast for the stock is $45.00 – $93.00. Based on these forecasts, analysts predict Cognizant Technology Solutions Corporation (CTSH) will achieve an average price target of $64.40.


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