Cognizant Technology Solutions Corp’s (CTSH) Stock: A 61.03% Annual Performance Rate

The stock of Cognizant Technology Solutions Corp (CTSH) has seen a -3.13% decrease in the past week, with a -4.95% drop in the past month, and a -0.56% decrease in the past quarter. The volatility ratio for the week is 1.87%, 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 -3.98% for CTSH’s stock, with a simple moving average of 4.38% for the last 200 days.

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 16.98x, which is above its average ratio. Moreover, the 36-month beta value for CTSH is 1.06. Analysts have varying opinions on the stock, with 4 analysts rating it as a “buy,” 4 as “overweight,” 18 as “hold,” and 1 as “sell.”

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The public float for CTSH is 494.79M and currently, short sellers hold a 3.64% of that float. On December 31, 2024, CTSH’s average trading volume was 3.08M shares.

CTSH) stock’s latest price update

The stock of Cognizant Technology Solutions Corp (NASDAQ: CTSH) has decreased by -3.09 when compared to last closing price of 79.20.Despite this, the company has seen a loss of -3.13% in its stock price over the last five trading days. zacks.com reported 2024-12-20 that Investors interested in stocks from the Business – Software Services sector have probably already heard of Cognizant (CTSH) and Wipro Limited (WIT). But which of these two companies is the best option for those looking for undervalued stocks?

Analysts’ Opinion of CTSH

Many brokerage firms have already submitted their reports for CTSH stocks, with Barclays repeating the rating for CTSH by listing it as a “Overweight.” The predicted price for CTSH in the upcoming period, according to Barclays is $95 based on the research report published on December 17, 2024 of the current year 2024.

Jefferies, on the other hand, stated in their research note that they expect to see CTSH reach a price target of $90. The rating they have provided for CTSH stocks is “Buy” according to the report published on August 28th, 2024.

BofA Securities gave a rating of “Neutral” to CTSH, setting the target price at $75 in the report published on August 07th of the current year.

CTSH Trading at -2.50% 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 -6.92% of loss for the given period.

Volatility was left at 1.68%, however, over the last 30 days, the volatility rate increased by 1.87%, as shares sank -4.65% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.27% lower at present.

During the last 5 trading sessions, CTSH fell by -3.13%, which changed the moving average for the period of 200-days by +0.52% in comparison to the 20-day moving average, which settled at $79.93. In addition, Cognizant Technology Solutions Corp saw 1.62% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at CTSH starting from Dalal Jatin P, who sale 4,900 shares at the price of $81.19 back on Dec 06 ’24. After this action, Dalal Jatin P now owns 12,756 shares of Cognizant Technology Solutions Corp, valued at $397,854 using the latest closing price.

Dalal Jatin P, the Chief Financial Officer of Cognizant Technology Solutions Corp, sale 100 shares at $81.00 during a trade that took place back on Dec 09 ’24, which means that Dalal Jatin P is holding 12,656 shares at $8,100 based on the most recent closing price.

Stock Fundamentals for CTSH

Current profitability levels for the company are sitting at:

  • 0.15 for the present operating margin
  • 0.32 for the gross margin

The net margin for Cognizant Technology Solutions Corp stands at 0.12. The total capital return value is set at 0.18. Equity return is now at value 16.48, with 11.78 for asset returns.

Based on Cognizant Technology Solutions Corp (CTSH), the company’s capital structure generated 0.09 points at debt to capital in total, while cash flow to debt ratio is standing at 1.38. The debt to equity ratio resting at 0.1. The interest coverage ratio of the stock is 64.37.

Currently, EBITDA for the company is 3.35 billion with net debt to EBITDA at -0.04. When we switch over and look at the enterprise to sales, we see a ratio of 1.95. The receivables turnover for the company is 4.62for trailing twelve months and the total asset turnover is 0.96. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.23.

Conclusion

To wrap up, the performance of Cognizant Technology Solutions Corp (CTSH) has been mixed 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.

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