The stock price of Cognizant Technology Solutions Corp. (NASDAQ: CTSH) has dropped by -0.03 compared to previous close of 66.27. Despite this, the company has seen a fall of -1.03% in its stock price over the last five trading days. Zacks Investment Research reported 2024-05-02 that Cognizant’s (CTSH) first-quarter 2024 results suffer from a challenging macroeconomic environment and cautious client spending.
Is It Worth Investing in Cognizant Technology Solutions Corp. (NASDAQ: CTSH) Right Now?
Cognizant Technology Solutions Corp. (NASDAQ: CTSH) has a price-to-earnings ratio of 15.91x that is above its average ratio. Additionally, the 36-month beta value for CTSH is 1.05. There are mixed opinions on the stock, with 14 analysts rating it as a “buy,” 10 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”
The public float for CTSH is 496.18M and currently, short sellers hold a 2.67% ratio of that float. The average trading volume of CTSH on May 06, 2024 was 4.57M shares.
CTSH’s Market Performance
CTSH’s stock has seen a -1.03% decrease for the week, with a -7.48% drop in the past month and a -14.94% fall in the past quarter. The volatility ratio for the week is 2.14%, and the volatility levels for the past 30 days are at 1.64% for Cognizant Technology Solutions Corp.. The simple moving average for the past 20 days is -2.79% for CTSH’s stock, with a -7.16% simple moving average for the past 200 days.
Analysts’ Opinion of CTSH
Many brokerage firms have already submitted their reports for CTSH stocks, with Susquehanna repeating the rating for CTSH by listing it as a “Neutral.” The predicted price for CTSH in the upcoming period, according to Susquehanna is $80 based on the research report published on April 01, 2024 of the current year 2024.
Guggenheim, on the other hand, stated in their research note that they expect to see CTSH reach a price target of $80. The rating they have provided for CTSH stocks is “Neutral” according to the report published on March 19th, 2024.
Mizuho gave a rating of “Neutral” to CTSH, setting the target price at $82 in the report published on January 30th of the current year.
CTSH Trading at -8.88% 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 -17.28% of loss for the given period.
Volatility was left at 1.64%, however, over the last 30 days, the volatility rate increased by 2.14%, as shares sank -6.86% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -16.62% lower at present.
During the last 5 trading sessions, CTSH fell by -1.03%, which changed the moving average for the period of 200-days by -4.11% in comparison to the 20-day moving average, which settled at $67.91. In addition, Cognizant Technology Solutions Corp. saw -12.29% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CTSH starting from Diaz Kathryn, who sale 900 shares at the price of $77.06 back on Mar 12 ’24. After this action, Diaz Kathryn now owns 8,312 shares of Cognizant Technology Solutions Corp., valued at $69,350 using the latest closing price.
Patsalos-Fox Michael, the Director of Cognizant Technology Solutions Corp., sale 10,000 shares at $76.73 during a trade that took place back on Feb 21 ’24, which means that Patsalos-Fox Michael is holding 54,695 shares at $767,323 based on the most recent closing price.
Stock Fundamentals for CTSH
Current profitability levels for the company are sitting at:
- 0.14 for the present operating margin
- 0.33 for the gross margin
The net margin for Cognizant Technology Solutions Corp. stands at 0.11. The total capital return value is set at 0.18. Equity return is now at value 16.00, with 11.45 for asset returns.
Based on Cognizant Technology Solutions Corp. (CTSH), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 2.19. The debt to equity ratio resting at 0.06. The interest coverage ratio of the stock is 63.93.
Currently, EBITDA for the company is 3.46 billion with net debt to EBITDA at -0.14. When we switch over and look at the enterprise to sales, we see a ratio of 1.68. The receivables turnover for the company is 5.05for trailing twelve months and the total asset turnover is 1.05. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.35.
Conclusion
In conclusion, Cognizant Technology Solutions Corp. (CTSH) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
