Cognizant Technology Solutions Corporation [CTSH] is -26.57% lower this YTD. Is it still time to buy?


Cognizant Technology Solutions Corporation [NASDAQ: CTSH] loss -0.84% or -0.55 points to close at $65.15 with a heavy trading volume of 3469781 shares. The company report on July 7, 2022 that Zurich Insurance Germany Selects Cognizant as Strategic IT Partner to Transform its General Insurance Application Landscape.

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Multi-year agreement will transform the insurer’s applications to enhance the digital experience of its customers and partners in Germany.

Cognizant today announced that it has extended its relationship with Zurich Beteiligungs-AG, the German subsidiary of global insurance leader Zurich Insurance Group (Zurich), to help Zurich Germany deliver more digital services offerings to its clients and partners. As part of the new multi-year agreement, Cognizant will work closely with Zurich Germany to simplify, modernize, and manage and maintain the insurer’s enterprise application landscape in the General Insurance domain. The partnership will establish joint DevOps teams and is designed to extend Zurich Germany’s artificial intelligence (AI), data, software engineering and cloud capabilities.

It opened the trading session at $65.93, the shares rose to $66.48 and dropped to $64.755, the range by which the price of stock traded the whole day. The daily chart for CTSH points out that the company has recorded -25.47% loss over the past six months. However, it is still -0.02% lower than its most recent low trading price.

If we look at the average trading volume of 3.15M shares, CTSH reached to a volume of 3469781 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cognizant Technology Solutions Corporation [CTSH]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CTSH shares is $89.30 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CTSH stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Cognizant Technology Solutions Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 21, 2022. While these analysts kept the previous recommendation, Citigroup raised their target price from $93 to $95. The new note on the price target was released on January 14, 2022, representing the official price target for Cognizant Technology Solutions Corporation stock. Previously, the target price had yet another raise to $104, while Goldman analysts kept a Buy rating on CTSH stock. On January 10, 2022, analysts increased their price target for CTSH shares from 91 to 95.

The Average True Range (ATR) for Cognizant Technology Solutions Corporation is set at 1.68, with the Price to Sales ratio for CTSH stock in the period of the last 12 months amounting to 1.81. The Price to Book ratio for the last quarter was 2.85, with the Price to Cash per share for the same quarter was set at 4.41. Price to Free Cash Flow for CTSH in the course of the last twelve months was 19.18 with Quick ratio for the last quarter at 2.20.

Trading performance analysis for CTSH stock

Cognizant Technology Solutions Corporation [CTSH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.80. With this latest performance, CTSH shares dropped by -7.94% in over the last four-week period, additionally sinking by -25.47% over the last 6 months – not to mention a drop of -5.92% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CTSH stock in for the last two-week period is set at 33.31, with the RSI for the last a single of trading hit 29.09, and the three-weeks RSI is set at 35.33 for Cognizant Technology Solutions Corporation [CTSH]. The present Moving Average for the last 50 days of trading for this stock 71.60, while it was recorded at 66.69 for the last single week of trading, and 80.95 for the last 200 days.

Cognizant Technology Solutions Corporation [CTSH]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cognizant Technology Solutions Corporation [CTSH] shares currently have an operating margin of +14.93 and a Gross Margin at +33.90. Cognizant Technology Solutions Corporation’s Net Margin is presently recorded at +11.55.

Return on Equity for this stock inclined to 18.72, with Return on Assets sitting at 12.29.

Cognizant Technology Solutions Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.20.

Cognizant Technology Solutions Corporation [CTSH]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CTSH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cognizant Technology Solutions Corporation go to 10.48%.

An analysis of insider ownership at Cognizant Technology Solutions Corporation [CTSH]

There are presently around $31,553 million, or 94.50% of CTSH stock, in the hands of institutional investors. The top three institutional holders of CTSH stocks are: BLACKROCK INC. with ownership of 45,653,375, which is approximately -1.391% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 42,692,149 shares of the stock with an approximate value of $2.8 billion in CTSH stocks shares; and DODGE & COX, currently with $1.9 billion in CTSH stock with ownership of nearly -1.138% of the company’s market capitalization.

Positions in Cognizant Technology Solutions Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 451 institutional holders increased their position in Cognizant Technology Solutions Corporation [NASDAQ:CTSH] by around 31,449,100 shares. Additionally, 450 investors decreased positions by around 31,850,979 shares, while 140 investors held positions by with 416,953,238 shares. The mentioned changes placed institutional holdings at 480,253,317 shares, according to the latest SEC report filing. CTSH stock had 105 new institutional investments in for a total of 2,347,243 shares, while 79 institutional investors sold positions of 1,565,029 shares during the same period.