Cognizant Technology Solutions Corp. (NASDAQ: CTSH)’s stock price has plunge by 1.53relation to previous closing price of 68.48. Nevertheless, the company has seen a 5.43% surge in its stock price over the last five trading sessions. Zacks Investment Research reported 2023-11-02 that Cognizant’s (CTSH) third-quarter 2023 results benefit from strong Communications, Media and Technology revenues, as well as acquisitions, amid a challenging macro environment.
Is It Worth Investing in Cognizant Technology Solutions Corp. (NASDAQ: CTSH) Right Now?
The price-to-earnings ratio for Cognizant Technology Solutions Corp. (NASDAQ: CTSH) is 16.93x, which is above its average ratio. Moreover, the 36-month beta value for CTSH is 1.08. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 1 as “overweight,” 20 as “hold,” and 2 as “sell.”
The average price recommended by analysts for Cognizant Technology Solutions Corp. (CTSH) is $70.98, which is $1.45 above the current market price. The public float for CTSH is 500.45M and currently, short sellers hold a 1.13% of that float. On November 20, 2023, CTSH’s average trading volume was 3.08M shares.
CTSH’s Market Performance
The stock of Cognizant Technology Solutions Corp. (CTSH) has seen a 5.43% increase in the past week, with a 6.25% rise in the past month, and a 1.12% gain in the past quarter. The volatility ratio for the week is 1.51%, and the volatility levels for the past 30 days are at 1.68% for CTSH. The simple moving average for the last 20 days is 6.32% for CTSH stock, with a simple moving average of 6.97% for the last 200 days.
Analysts’ Opinion of CTSH
Many brokerage firms have already submitted their reports for CTSH stocks, with Redburn Atlantic repeating the rating for CTSH by listing it as a “Neutral.” The predicted price for CTSH in the upcoming period, according to Redburn Atlantic is $68 based on the research report published on November 16, 2023 of the current year 2023.
CTSH Trading at 3.37% from the 50-Day Moving Average
After a stumble in the market that brought CTSH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.37% of loss for the given period.
Volatility was left at 1.68%, however, over the last 30 days, the volatility rate increased by 1.51%, as shares surge +5.77% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.54% lower at present.
During the last 5 trading sessions, CTSH rose by +5.43%, which changed the moving average for the period of 200-days by -1.60% in comparison to the 20-day moving average, which settled at $65.59. In addition, Cognizant Technology Solutions Corp. saw 21.58% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at CTSH starting from Patsalos-Fox Michael, who sale 6,926 shares at the price of $62.79 back on Jun 12. After this action, Patsalos-Fox Michael now owns 64,695 shares of Cognizant Technology Solutions Corp., valued at $434,875 using the latest closing price.
Mackay Leo S. Jr., the Director of Cognizant Technology Solutions Corp., sale 4,473 shares at $61.99 during a trade that took place back on Jun 09, which means that Mackay Leo S. Jr. is holding 26,671 shares at $277,294 based on the most recent closing price.
Stock Fundamentals for CTSH
Current profitability levels for the company are sitting at:
- +15.35 for the present operating margin
- +33.07 for the gross margin
The net margin for Cognizant Technology Solutions Corp. stands at +11.79. The total capital return value is set at 21.69, while invested capital returns managed to touch 16.92. Equity return is now at value 16.82, with 11.79 for asset returns.
Based on Cognizant Technology Solutions Corp. (CTSH), the company’s capital structure generated 12.57 points at debt to equity in total, while total debt to capital is 11.16. Total debt to assets is 8.67, with long-term debt to equity ratio resting at 11.05. Finally, the long-term debt to capital ratio is 9.82.
When we switch over and look at the enterprise to sales, we see a ratio of 1.74, with the company’s debt to enterprise value settled at 0.05. The receivables turnover for the company is 4.86 and the total asset turnover is 1.09. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.17.
To wrap up, the performance of Cognizant Technology Solutions Corp. (CTSH) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.