Worth Watching: Could Cognizant Technology Solutions Corp Change Direction After Making Yearly Low?

Worth Watching: Could Cognizant Technology Solutions Corp Change Direction After Making Yearly Low?

The stock of Cognizant Technology Solutions Corp (NASDAQ:CTSH) hit a new 52-week low and has $44.95 target or 6.00% below today’s $47.82 share price. The 7 months bearish chart indicates high risk for the $29.08B company. The 1-year low was reported on Sep, 30 by Barchart.com. If the $44.95 price target is reached, the company will be worth $1.74 billion less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 7.10 million shares traded hands or 65.89% up from the average. Cognizant Technology Solutions Corp (NASDAQ:CTSH) has declined 3.58% since February 26, 2016 and is downtrending. It has underperformed by 14.00% the S&P500.

Analysts await Cognizant Technology Solutions Corp (NASDAQ:CTSH) to report earnings on November, 2. They expect $0.75 earnings per share, up 11.94% or $0.08 from last year’s $0.67 per share. CTSH’s profit will be $456.14M for 15.96 P/E if the $0.75 EPS becomes a reality. After $0.79 actual earnings per share reported by Cognizant Technology Solutions Corp for the previous quarter, Wall Street now forecasts -5.06% negative EPS growth.

Cognizant Technology Solutions Corp (NASDAQ:CTSH) Ratings Coverage

Out of 18 analysts covering Cognizant Technology Solutions Corp. (NASDAQ:CTSH), 14 rate it a “Buy”, 1 “Sell”, while 3 “Hold”. This means 78% are positive. $82 is the highest target while $65 is the lowest. The $69.69 average target is 45.73% above today’s ($47.82) stock price. Cognizant Technology Solutions Corp. has been the topic of 27 analyst reports since August 6, 2015 according to StockzIntelligence Inc. The stock of Cognizant Technology Solutions Corp (NASDAQ:CTSH) earned “Buy” rating by Citigroup on Wednesday, July 20. As per Friday, September 9, the company rating was initiated by Wedbush. The rating was initiated by Cowen & Co with “Outperform” on Friday, February 19. SunTrust initiated Cognizant Technology Solutions Corp (NASDAQ:CTSH) on Thursday, September 10 with “Buy” rating. The firm earned “Buy” rating on Friday, October 16 by Cantor Fitzgerald. Sterne Agee CRT initiated Cognizant Technology Solutions Corp (NASDAQ:CTSH) on Thursday, December 17 with “Neutral” rating. The rating was maintained by Argus Research on Tuesday, August 11 with “Buy”. The company was maintained on Thursday, November 5 by Monness Crespi & Hardt. The rating was maintained by BMO Capital Markets on Thursday, August 6 with “Outperform”. On Thursday, September 15 the stock rating was downgraded by Goldman Sachs to “Neutral”.

According to Zacks Investment Research, “Cognizant Technology Solutions delivers high-quality, cost-effective, full life cycle solutions to complex software development and maintenance problems that companies face as they transition to e-business. These services are delivered through the use of a seamless on-site and offshore consulting project team. The company’s solutions include application development and integration, application management, re-engineering, and mass change services.”

Insitutional Activity: The institutional sentiment increased to 0.97 in 2016 Q2. Its up 0.12, from 0.85 in 2016Q1. The ratio is positive, as 65 funds sold all Cognizant Technology Solutions Corp shares owned while 291 reduced positions. 67 funds bought stakes while 278 increased positions. They now own 506.90 million shares or 5.36% less from 535.62 million shares in 2016Q1.

Genesis Asset Managers Llp holds 15.89% of its portfolio in Cognizant Technology Solutions Corp for 6.50 million shares. Provident Trust Co owns 4.09 million shares or 12.89% of their US portfolio. Moreover, Bluespruce Investments Lp has 10.47% invested in the company for 455,150 shares. The Missouri-based Cortland Associates Inc Mo has invested 9.49% in the stock. Veritas Investment Management Llp, a United Kingdom-based fund reported 782,427 shares.

Insider Transactions: Since January 1, 0001, the stock had 0 buys, and 17 insider sales for $41.12 million net activity.

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