Simon Quick Advisors LLC has significantly increased its investment in Cognizant Technology Solutions Corporation, raising its stake by an impressive 147.0% during the second quarter of 2023. The firm now holds 7,260 shares of the information technology service provider, having acquired an additional 4,321 shares in this period. By the end of the latest reporting period, Simon Quick Advisors’ holdings in Cognizant were valued at approximately $567,000.
This increase in ownership comes amid a broader trend of institutional investors adjusting their positions in Cognizant. Notably, Strs Ohio has also expanded its stake by 10.1%, owning 40,772 shares worth $3,181,000 after securing an additional 3,728 shares. Similarly, Amalgamated Bank raised its position by 2.1%, now holding 99,503 shares valued at $7,764,000.
In a remarkable shift, Auto Owners Insurance Co ramped up its stake by 2,279.5%, bringing its total to 10,232 shares worth $798,000. Other investors, such as New York Life Investment Management LLC and Motley Fool Asset Management LLC, have also made notable increases in their holdings, with shares valued at $5,761,000 and $2,406,000, respectively. Collectively, institutional investors and hedge funds now control approximately 92.44% of Cognizant’s stock.
Cognizant’s Market Performance and Upcoming Dividend
On the trading front, Cognizant Technology Solutions opened at $72.88 on Friday. The stock has experienced a 50-day moving average price of $69.02 and a 200-day moving average of $73.67. The company’s shares have fluctuated between a 52-week low of $65.15 and a high of $90.82. The firm boasts a market capitalization of $35.59 billion and a price-to-earnings (P/E) ratio of 16.91, alongside a low debt-to-equity ratio of 0.04.
Further enhancing its appeal to investors, Cognizant recently announced a quarterly dividend of $0.31 per share, which will be paid on November 26, 2023. Shareholders of record by November 18, 2023 will be eligible for this dividend, translating into an annualized yield of 1.7%. The company’s payout ratio currently stands at 28.77%.
Analyst Ratings and Future Outlook
Research analysts have provided mixed ratings on Cognizant’s stock. The Goldman Sachs Group reaffirmed a “neutral” rating with a price target of $84.00, while Guggenheim maintained a “buy” rating but adjusted its price target to $85.00, down from $90.00. Mizuho has also set a target of $85.00, indicating a generally positive outlook among analysts.
Citigroup recently initiated coverage with a “neutral” rating and a price objective of $75.00. Overall, data from MarketBeat reveals that six analysts rate the stock as a buy, while twelve suggest holding shares, resulting in an average rating of “Hold” and a consensus price target of $85.19.
Cognizant Technology Solutions Corporation, headquartered in the United States, specializes in consulting, technology, and outsourcing services across various sectors, including financial services, health sciences, and communications. As it continues to attract significant investment interest, its financial performance and strategic decisions will remain under close observation by both analysts and investors.
