In recent developments, Morgan Stanley (NYSE:MS) has maintained an Equal-Weight recommendation for Cognizant Technology Solutions (NASDAQ:CTSH), setting a one-year price target at $73.30. This implies a potential 15.80% upside from the current price of $63.30. The firm's annual revenue is projected to rise by 6.37% to $20,630 million, accompanied by a non-GAAP EPS forecast at 4.82.
This week, changes were observed in institutional ownership and portfolio weight for CTSH. Despite a drop in institutional ownership by 3.82%, the average portfolio weight for CTSH has seen an increase of 3.45%. The put/call ratio of 1.02 suggests a bearish market sentiment towards the firm.
Several major shareholders have adjusted their stakes in CTSH recently. Dodge & Cox and Bank of New York Mellon (NYSE:BK) have reduced their shares and portfolio allocation in CTSH by 1.98% and 87.95%, respectively. On the other hand, Pzena Investment Management and Dodge & Cox Stock Fund have increased their portfolio allocation by 5.86% and 3.09%, respectively. Additionally, Vanguard Total Stock Market Index Fund Investor Shares has decreased its CTSH allocation by 0.93%.
InvestingPro Insights
InvestingPro Tips indicate that the management has been aggressively buying back shares and the company yields high returns on invested capital. These actions can often signal confidence in the company's future prospects. Furthermore, CTSH has raised its dividend for 3 consecutive years, which is an encouraging sign for investors looking for income in addition to capital appreciation.
Data from InvestingPro shows that CTSH has a market cap of $32,200 million and a P/E ratio of 14.87, which is lower than the sector average, suggesting that the stock may be undervalued. The company has also demonstrated a revenue growth of 0.73% and a gross profit of $6,847 million in the last twelve months as of Q2 2023.
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