Cognizant Technology Solutions Co. Announces Quarterly Dividend of $0.30 (NASDAQ:CTSH)

Cognizant Technology Solutions Co. (NASDAQ:CTSH) declared a quarterly dividend on Thursday, May 2nd, Wall Street Journal reports. Stockholders of record on Monday, May 20th will be given a dividend of 0.30 per share by the information technology service provider on Wednesday, May 29th. This represents a $1.20 annualized dividend and a dividend yield of 1.81%. The ex-dividend date is Friday, May 17th.

Cognizant Technology Solutions has increased its dividend by an average of 9.7% per year over the last three years and has raised its dividend every year for the last 5 years. Cognizant Technology Solutions has a dividend payout ratio of 24.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $4.92 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 24.4%.

Cognizant Technology Solutions Stock Up 1.4 %

CTSH traded up $0.90 during trading hours on Thursday, hitting $66.27. 8,540,540 shares of the company’s stock were exchanged, compared to its average volume of 4,291,306. The stock has a market cap of $32.99 billion, a price-to-earnings ratio of 15.77, a PEG ratio of 1.50 and a beta of 1.08. The stock’s 50-day moving average is $72.84 and its two-hundred day moving average is $72.51. The company has a quick ratio of 2.25, a current ratio of 2.25 and a debt-to-equity ratio of 0.05. Cognizant Technology Solutions has a 1-year low of $58.81 and a 1-year high of $80.09.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, May 1st. The information technology service provider reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.01. The firm had revenue of $4.76 billion for the quarter, compared to analyst estimates of $4.72 billion. Cognizant Technology Solutions had a return on equity of 17.83% and a net margin of 10.98%. The business’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.11 earnings per share. Sell-side analysts predict that Cognizant Technology Solutions will post 4.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Cognizant Technology Solutions

In other Cognizant Technology Solutions news, EVP Kathryn Diaz sold 900 shares of Cognizant Technology Solutions stock in a transaction dated Tuesday, March 12th. The shares were sold at an average price of $77.06, for a total value of $69,354.00. Following the completion of the transaction, the executive vice president now directly owns 8,312 shares of the company’s stock, valued at $640,522.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.27% of the company’s stock.

Analyst Upgrades and Downgrades

CTSH has been the topic of a number of recent analyst reports. Susquehanna decreased their price target on Cognizant Technology Solutions from $80.00 to $78.00 and set a “neutral” rating on the stock in a research report on Thursday. Societe Generale reaffirmed a “sell” rating and issued a $67.00 target price on shares of Cognizant Technology Solutions in a report on Friday, January 5th. Wolfe Research upgraded shares of Cognizant Technology Solutions from an “underperform” rating to a “peer perform” rating in a report on Thursday, January 4th. JPMorgan Chase & Co. decreased their target price on shares of Cognizant Technology Solutions from $81.00 to $74.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Mizuho began coverage on Cognizant Technology Solutions in a research report on Tuesday, January 30th. They issued a “neutral” rating and a $82.00 price objective for the company. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $75.63.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.