Franklin Resources Inc. Grows Stock Position in Cognizant Technology Solutions Co. (NASDAQ:CTSH)

Franklin Resources Inc. increased its position in shares of Cognizant Technology Solutions Co. (NASDAQ:CTSH) by 5.4% in the 4th quarter, Holdings Channel reports. The firm owned 2,959,605 shares of the information technology service provider’s stock after purchasing an additional 151,977 shares during the period. Franklin Resources Inc.’s holdings in Cognizant Technology Solutions were worth $227,594,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in CTSH. Benjamin Edwards Inc. raised its position in shares of Cognizant Technology Solutions by 7,116.3% in the third quarter. Benjamin Edwards Inc. now owns 38,463 shares of the information technology service provider’s stock valued at $2,969,000 after buying an additional 37,930 shares during the last quarter. Centiva Capital LP acquired a new stake in Cognizant Technology Solutions in the 3rd quarter valued at about $1,712,000. Janus Henderson Group PLC lifted its stake in Cognizant Technology Solutions by 3.4% in the 3rd quarter. Janus Henderson Group PLC now owns 60,813 shares of the information technology service provider’s stock worth $4,694,000 after purchasing an additional 2,000 shares in the last quarter. Motley Fool Asset Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 5.3% during the 3rd quarter. Motley Fool Asset Management LLC now owns 22,892 shares of the information technology service provider’s stock worth $1,742,000 after purchasing an additional 1,152 shares during the last quarter. Finally, Prana Capital Management LP grew its position in shares of Cognizant Technology Solutions by 1,073.9% in the third quarter. Prana Capital Management LP now owns 105,037 shares of the information technology service provider’s stock valued at $8,107,000 after purchasing an additional 96,089 shares in the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH opened at $76.45 on Wednesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.09. The company has a market cap of $37.81 billion, a P/E ratio of 16.95, a P/E/G ratio of 2.11 and a beta of 1.12. The stock has a 50-day moving average of $82.62 and a two-hundred day moving average of $79.51. Cognizant Technology Solutions Co. has a 1-year low of $63.79 and a 1-year high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share for the quarter, beating analysts’ consensus estimates of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.35% and a return on equity of 16.78%. As a group, analysts anticipate that Cognizant Technology Solutions Co. will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th were paid a $0.31 dividend. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a dividend yield of 1.62%. The ex-dividend date was Tuesday, February 18th. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 27.49%.

Cognizant Technology Solutions announced that its Board of Directors has authorized a stock buyback program on Tuesday, March 25th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the information technology service provider to buy up to 5.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Royal Bank of Canada reissued a “sector perform” rating and set a $93.00 price objective on shares of Cognizant Technology Solutions in a research note on Wednesday, March 26th. Morgan Stanley lowered their price target on shares of Cognizant Technology Solutions from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Wednesday, March 12th. BMO Capital Markets raised their price objective on shares of Cognizant Technology Solutions from $88.00 to $94.00 and gave the stock a “market perform” rating in a research report on Thursday, February 6th. Barclays boosted their target price on shares of Cognizant Technology Solutions from $95.00 to $103.00 and gave the company an “overweight” rating in a report on Monday, February 10th. Finally, StockNews.com upgraded shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Thursday, February 6th. Fourteen equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $84.56.

Cognizant Technology Solutions Company Profile

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.