It’s an appealing income play to consider Cognizant Technology Solutions Corporation (CTSH)

The price of Cognizant Technology Solutions Corporation (NASDAQ: CTSH) closed at 59.80 in the last session, down -0.47% from day before closing price of $60.08. In other words, the price has decreased by $-0.28 from its previous closing price. On the day, 3829024 shares were traded. CTSH reached its highest trading level at $60.54 during the session, while it also had its lowest trading level at $59.63.

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We take a closer look at CTSH’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 13.31 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 17.25. For the most recent quarter (mrq), Quick Ratio is recorded 2.20 and its Current Ratio is at 2.20. In the meantime, Its Debt-to-Equity ratio is 0.05 whereas as Long-Term Debt/Eq ratio is at 0.05.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, HSBC Securities on August 17, 2022, Downgraded its rating to Hold and sets its target price to $79 from $90 previously.

On July 28, 2022, JP Morgan Downgraded its rating to Neutral which previously was Overweight and also lowered its target price recommendation from $82 to $77.

UBS Upgraded its Sell to Neutral on January 21, 2022, whereas the target price for the stock was revised from $58.50 to $89.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Sep 09 when Abdalla Zein sold 4,368 shares for $65.44 per share. The transaction valued at 285,846 led to the insider holds 13,556 shares of the business.

Patsalos-Fox Michael sold 5,687 shares of CTSH for $423,139 on May 17. The Director now owns 57,534 shares after completing the transaction at $74.40 per share. On May 10, another insider, Stafford Andrew J, who serves as the EVP, Head of Global Delivery of the company, sold 5,867 shares for $77.24 each. As a result, the insider received 453,167 and left with 5,872 shares of the company.

Valuation Measures:

As of this moment, Cognizant’s Price-to-Earnings (P/E) ratio for their current fiscal year is 13.88, and their Forward P/E ratio for the next fiscal year is 11.95. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.35. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.60 while its Price-to-Book (P/B) ratio in mrq is 2.60.

Stock Price History:

Over the past 52 weeks, CTSH has reached a high of $93.47, while it has fallen to a 52-week low of $60.06. The 50-Day Moving Average of the stock is 66.14, while the 200-Day Moving Average is calculated to be 77.80.

Shares Statistics:

According to the various share statistics, CTSH traded on average about 3.05M shares per day over the past 3-months and 3.46M shares per day over the past 10 days. A total of 520.00M shares are outstanding, with a floating share count of 516.75M. Insiders hold about 0.10% of the company’s shares, while institutions hold 93.20% stake in the company. Shares short for CTSH as of Jul 14, 2022 were 6.5M with a Short Ratio of 2.29, compared to 5.14M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.25% and a Short% of Float of 1.25%.

Dividends & Splits

The forward annual dividend rate for CTSH is 1.08, which was 0.88 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 1.46%, it implies a Forward Annual Dividend Yield of 1.59%. The stock’s 5-year Average Dividend Yield is 1.13. The current Payout Ratio is 23.60% for CTSH, which recently paid a dividend on Aug 29, 2022 with an ex-dividend date of Aug 17, 2022. Stock splits for the company last occurred on Mar 09, 2014 when the company split stock in a 2:1 ratio.

Earnings Estimates

The company has 20 analysts who recommend its stock at the moment. On average, analysts expect EPS of $1.16 for the current quarter, with a high estimate of $1.19 and a low estimate of $1.13, while EPS last year was $1.06. The consensus estimate for the next quarter is $1.17, with high estimates of $1.22 and low estimates of $1.13.

Analysts are recommending an EPS of between $4.61 and $4.22 for the fiscal current year, implying an average EPS of $4.53. EPS for the following year is $4.99, with 27 analysts recommending between $5.25 and $4.8.

Revenue Estimates

According to 17 analysts, the current quarter’s revenue is expected to be $5B. It ranges from a high estimate of $5.13B to a low estimate of $4.74B. As of the current estimate, Cognizant Technology Solutions Corporation’s year-ago sales were $4.72B, an estimated increase of 5.90% from the year-ago figure. For the next quarter, 17 analysts are estimating revenue of $5.05B, an increase of 5.70% less than the figure of $5.90% in the same quarter last year. There is a high estimate of $5.19B for the next quarter, whereas the lowest estimate is $4.78B.

A total of 26 analysts have provided revenue estimates for CTSH’s current fiscal year. The highest revenue estimate was $20.49B, while the lowest revenue estimate was $19.74B, resulting in an average revenue estimate of $19.86B. In the same quarter a year ago, actual revenue was $18.51B, up 7.30% from the average estimate. Based on 28 analysts’ estimates, the company’s revenue will be $21.43B in the next fiscal year. The high estimate is $22.37B and the low estimate is $20.72B. The average revenue growth estimate for next year is up 7.90% from the average revenue estimate for this year.