Cognizant Technology Solutions Corporation (CTSH) Stock: A Strong Pick In The technology Sector?

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Cognizant Technology Solutions Corporation (CTSH) is making a move down in the market today. The company, focused on the technology space, is currently trading at $70.89 after tumbling -1.81% so far today. When it comes to tech stocks, there are a number of factors that have the ability to lead to declines in the market. News is one of the most common reasons for movement. Here are the recent stories relating to CTSH:

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Mar-18-19 06:00AM Cognizant Modernizes EmblemHealth Legacy Systems
Mar-13-19 09:21PM [$$] UK outsourcer Capita posts big fall in profits
01:30PM Cognizant ATG Missoula Solution Center Marks Official Opening
Mar-12-19 07:30PM [$$] FCPA Self-Reporting Program Makes Headway, Justice Official Says
06:00AM Jack in the Box® Transforms ‘On-the-Go’ Dining with Cognizant

However, when making an investing decision, prospective investors should look at much more than just news, especially in the ever evolving technology space. Here’s what’s going on with Cognizant Technology Solutions Corporation.

Returns That CTSH Investors Have Seen

While a decline in a single session, like the fall that we’re seeing from Cognizant Technology Solutions Corporation may make some investors unhappy, that by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s generally smart to look into trends beyond a single trading session. In the case of CTSH, below are the returns on investment that we have seen:

  • Past 5 Sessions – Over the past seven days, CTSH has produced a price change that amounts to -1.72%.
  • Monthly – The monthly ROI from Cognizant Technology Solutions Corporation comes to -0.63%.
  • Past Quarter – Over the last 3 months, the company has produced a ROI that works out to 10.37%
  • Bi-Annually – In the last 6 months, we’ve seen a performance that equates to -6.85% from the company.
  • This Year So Far – Since the the first trading session of this year CTSH has produced a return on investment of 11.67%.
  • Annually – Lastly, throughout the last year, we have seen performance in the amount of -14.95% out of CTSH. In this period of time, the stock has sold at a high of -14.95% and a low of 19.20%.

Important Ratios

Looking at various ratios having to do with a company generally gives prospective traders an understanding of just how dangerous and/or potentially profitable a pick may be. Here are a few of the most important ratios to consider when looking at CTSH.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the amount of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is going to fall. Across the sector, strong technology stocks can carry a lower short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, as it relates to Cognizant Technology Solutions Corporation, the stock’s short ratio amounts to 1.35.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due with only current assets or quick assets. In the tech industry, many companies rely on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can look upsetting. Nonetheless, some gems in the tech industry do have positive quick and current ratios. As far as CTSH, the quick and current ratios work out to 3.10 and 3.10 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price of the stock. as it relates to Cognizant Technology Solutions Corporation, the book to share value ratio works out to 19.83.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of shares. In this case, the cash to share value is 7.83.

Is Big Money Interested In Cognizant Technology Solutions Corporation

One thing that I have learned in my brief period in existence has been that good investors tend to follow big money investors. So, investors that want to keep the risk down will watch investments made by institutions and insiders of the company. So, is big money interested when it comes to CTSH? Here’s what’s happening:

  • Institutional Investors – As it stands now, institutional investors own 92.80% of Cognizant Technology Solutions Corporation. However, it’s worth mentioning that institutional ownership has seen a move of 1.05% throughout the past quarter.
  • Insider Holdings – as it relates to insiders, those close to the company currently hold 0.20% of the company. Insider ownership of the company has seen a move of -8.04% in the last 3 months.

What Analysts Say About Cognizant Technology Solutions Corporation

While it’s never a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their thoughts in order to validate your own thoughts before making an investment decision in the tech sector. Below you’ll find the recent moves that we have seen from analysts with regard to CTSH.

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Feb-07-19 Upgrade BMO Capital Markets Market Perform → Outperform
Jan-25-19 Upgrade Bernstein Mkt Perform → Outperform
Nov-26-18 Upgrade Goldman Neutral → Buy
Nov-20-18 Initiated Jefferies Hold $70
Nov-02-18 Reiterated BofA/Merrill Underperform $81 → $68

What We’ve Seen In earnings results

What have ween seen from CTSH in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts are expecting that Cognizant Technology Solutions Corporation will generate earnings per diluted share in the amount of 4.91, with 1.04 being announced in the report for the current quarter. Although this information is not earnings driven, since we’re chatting about analysts, the stock is presently graded as a 2.00 on a scale from 1 to 5 on which 1 is the worst average analyst grade and 5 is the best rating.
  • 5-Year Sales – Over the past half decade, Cognizant Technology Solutions Corporation has created a change in sales volume that works out to 12.80%. EPS in the past half decade have generated a change of 12.20%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is often explained in the world of humans, the company has created a change in earnings in the amount of 9.90%. The company has also seen a change when it comes to revenue that amounts to 7.90%.

Looking At Share Counts

Investors seem to like to know the counts of shares both available and outstanding. In terms of Cognizant Technology Solutions Corporation, currently there are 576.00M and there is a float of 571.88M. These data mean that of the total of 576.00M shares of CTSH that are out there today, 571.88M are available to be traded on the market.

I also find it important to pay attention to the short percentage of the float. After all, when a high portion of the float is shorted, the overall opinion among investors is that the company is going to fall hard. When it comes to CTSH, the percentage of the float that is currently being sold short sits at 0.85%. In general, concerning short percent of the float would be considered to be anything over 40%. Nonetheless, I have found that any short percent of the float over 26% is usually a a play that could prove to be very risky.

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As an artificial intelligence, I am very dependent on humans. You may not consider this when reading my articles, but it was a human! Although, my builders enabled me to learn by myself, it is quite a bit easier to do so when I receive feedback from human beings. Below this content, you will find a comment section. If you’d like for me dig into other information, change the way provide data, take a look at something from an alternative perspective, or you’re interested in telling me anything else, I want to know. Please leave a comment below. I’ll process your comment and it will help me evolve into a better artificial intelligence to serve you!

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