Cognizant Technology Solutions Corporation's (CTSH) "Outperform" Rating Reaffirmed at Wedbush
- Author: Eleanor Harrison Feb 10, 2017,
Feb 10, 2017, 1:42
The High end of the Estimate is $3.65 Billion, while the Low end of the Estimate is $3.36 Billion.
On the plan return money to the shareholders, Cognizant expects to commence a $1.5 billion accelerated share repurchase program (ASR) in the first quarter of 2017, initiate a regular quarterly cash dividend of $0.15 per share commencing in the second quarter and repurchase shares of $1.2 billion in the open market during 2017 and 2018. EPS ratio determined by looking at last 12 month figures is 0.81.
Cognizant Technology Solutions Corporation (CTSH), one of the world's leading technology services companies, recently declared that it has reached a cooperation agreement with Elliott Administration ("Elliott"). Cognizant Technology Solutions Corporation shares last traded at $58.30, with a volume of 1,257,754 shares traded. Last year, it had about $3.23 billion of revenue.
For the current quarter, the highest estimate analysts provided is 3.53 Billion and the lowest is 3.44 Billion. Earnings, adjusted for stock option expense and non-recurring costs, were 87 cents per share. Out of 12 analysts polled by TipRanks in the last 3 months, 8 are bullish on Cognizant stock, 3 remain sidelined, and 1 is bearish on the stock.
Revenue for the fourth quarter of 2016 rose to $3.46 billion, up 7.1% from $3.23 billion in the fourth quarter of 2015. The company presently has an average rating of "Buy" and a consensus price target of $62.64. Stock's minimum price target estimates has been figured out at $45.00 while the maximum price target forecast is established at $75.00. The consensus recommendation by Thomson Reuters analysts is Outperform and their mean rating for the stock is 2.19 on scale of 1-5. Total debt to equity ratio of the company for most recent quarter is 0.09 whereas long term debt to equity ratio for most recent quarter is 0.08. Facing pressure from an activist investor, Cognizant Technology Solutions made a decision to appoint three new independent directors to the board and launch an aggressive effort to return cash to investors.
Elliot had asked the company to bring about changes in the company's board, which would cause the value of the shareholders to boost up. The stock added 2.28% beyond one week and declined -7.05% during previous one month session. LLC acquired a new position in shares of Cognizant Technology Solutions Corporation during the fourth quarter worth about $112,000. Number of analysts are covering this stock and now stock has got OUTPERFORM rating from 2 analysts of Thomson Reuters, 8 analysts given HOLD rating to the stock and 0 given UNDERPERFORM rating. Year to Date performance value (YTD perf) value is 0.75%. Washington Trust Bank now owns 3,479 shares of the information technology service provider's stock valued at $166,000 after buying an additional 1,690 shares during the last quarter. Cognizant Technology Solutions Corp (NASDAQ:CTSH)'s price to free cash flow for trailing twelve months is 24.01. The share price has moved forward from its 20 days moving average, trading at a distance of 2.01% and stays 1.18% away from its 50 days moving average.
Price Target plays a critical role when it comes to the Analysis of a Stock.
The company shows its Return on Assets (ROA) value of 11.9%.