Cognizant Technology Solutions Corporation (CTSH): Good time to sell it?


Cognizant Technology Solutions Corporation (NASDAQ:CTSH) changes shares on Tuesday trading session, with a change of -0.18% or -$0.12 shares. The trading starts at $67.17 and closed at $68.04 throughout the day. The trading session low price was $66.87 and day high was $67.99 on Tuesday, August 04. After the session, the Technology sector daily volume shifted to 2.96 million while its average volume is 3.47M. In other hand, the CTSH market cap reached to $37.18B. While, its current target price is $66.27.

On April 18, 2020, Cognizant hit by ‘Maze’ ransomware attack. According to the news reported on Reuters, Cognizant Technology Solutions Corp on Saturday said it was hit by a “Maze” ransomware cyber attack, resulting in service disruptions for some of its clients.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 8.43% and up 20.73% for month. Its quarterly performance was 18.87% above, while its half year performance is up 7.08%. CTSH yearly performance stood at positive 9.48% and rise 9.51% for year-to-date. Current recommendation for Cognizant Technology Solutions Corporation is 2.80.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. CTSH EPS (TTM) for 12-month is 2.96. EPS for this year is -8.40%, while for the next year its value is 3.94. Sales growth for the current quarter is 9.01 while its EPS Q/Q reached -26.10%. It has an EPS of 7.00% up for past five years and for the next five years will be up 2.55%.

Let’s take a look on the analyst recommendations on CTSH for the current month and previous month. For the current month, 7 of 31 analysts recommend stock as Buy while 4 as Sell, 1 as overweight, 1 as underweight and 18 as Hold. As compared with the previous month ratings, 31 analysts participate in stock recommendation. Out of 31, 5 rated it sell, 4 rated it as Buy and 18 as Hold Ratings. On the other hand, target price ranges from $45.50 – $85.00. Average target price for CTSH was reached at $68.71.

Blackrock Inc., Vanguard Group, Inc. (The) and Dodge & Cox Inc are the top three holders in Cognizant Technology Solutions Corporation (CTSH) stock. On Mar 30, 2020, Blackrock Inc. has 52.28 million shares which valued 2.43 billion. On Mar 30, 2020, Vanguard Group, Inc. (The) owned 43.94 million shares which valued at 2.04 billion. On Mar 30, 2020, Dodge & Cox Inc has a total of 23.68 million shares which valued at 1.1 billion. In the end, Dodge & Cox Inc have 4.37% shares outstanding of Cognizant Technology Solutions Corporation (CTSH) on Mar 30, 2020. The insider ownership moved to 0.10% and institutional holding shifted to 94.40%.

The company posted an EPS (TTM) of 2.96. According to the most recent quarter report on (Sep 2020), 22 analysts estimated an average EPS of 0.89, while 1.08 EPS posted a year ago period. Analyst Estimated EPS for CTSH published in the report was $0.82 – $0.96 during the same period. Comparing with last year, the average estimated EPS was 1.08 which is higher than 0.82 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for CTSH rise 16.07% for period of 200 days. SMA for 50 days was 18.04% which is showing green signal, while SMA-20 was 11.05%. The moving average value for Cognizant Technology Solutions Corporation (CTSH) is 12.02M and 2.08% for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in CTSH stock. On Jun 15, Friedrich Matthew W., General Counsel, sold 459 trading shares at the cost of $54.62, which valued at 25069.0. On Jun 15, Frank Malcolm, President, Digital Business, sold 448 shares at the cost of $54.62, with total shares of 35,446. On Jun 09, Telesmanic Robert, SVP, Cont. & Chief Acct. Offc., sold 242 shares at the cost of 57.36. After this transaction, Telesmanic Robert total shares reached to 9,770 which valued at 13881.0.