Is The Stock Overvalued? (P/E Analysis) - Cognizant Technology Solutions Corporation, (NASDAQ: CTSH)

Mindy Sparks
March 14, 2018

Taking short look on returns of the firm, net profit margin recorded as 39.80% while operating profit margin was 16.80%, whereas price to sale ratio stands at 3.37 and it indicates how much investor paid for a share compared to the sales a company generated per share.

Regeneron Pharmaceuticals, Inc., (NASDAQ: REGN) exhibits a change of 0.83% during the last trading, with the company's shares hitting the price near 344.55 on active trading volume of 4499294 contrast its three months average trading volume of 901.97K. About 4.50 million shares traded or 18.10% up from the average.

Shares of Cognizant Technology Solutions Corp (NASDAQ CTSH) opened at $84.71 on Friday. It has underperformed by 11.20% the S&P500.

Among 35 analysts covering Tesla Motors Inc (NASDAQ:TSLA), 12 have Buy rating, 10 Sell and 13 Hold. Therefore 25% are positive. The firm has "Overweight" rating given on Tuesday, August 2 by Barclays Capital. Zacks Investment Research lowered Cognizant Technology Solutions from a "buy" rating to a "hold" rating in a report on Friday, January 12th. Needham maintained Tata Motors Limited (NYSE:TTM) on Thursday, August 6 with "Buy" rating. The company was upgraded on Friday, January 6 by Wedbush. The firm has "Neutral" rating given on Wednesday, March 23 by Sidoti. Jefferies maintained the stock with "Hold" rating in Wednesday, August 5 report. Axa reported 0.12% in Cognizant Technology Solutions Corporation (NASDAQ:CTSH). The company has market cap of $73.29 million. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. And SharpCharts uses as a minimum 250 data points prior to the starting date of any chart (assuming that much data exists) at what time calculating its RSI values. Vestpro Financial Partners Inc. dba CPF Texas purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at approximately $107,000. A rating of 1 or 2 would be indicating a Buy recommendation. Therefore 34% are positive. The firm has "Buy" rating given on Monday, May 1 by BMO Capital Markets. SunTrust upgraded Cognizant Technology Solutions Corporation (NASDAQ:CTSH) on Thursday, April 13 to "Buy" rating. The rating was maintained by Bernstein on Thursday, November 2 with "Outperform". The stock price of CTSH is moving up from its 20 days moving average with 4.72% and isolated positively from 50 days moving average with 9.53%. Societe Generale initiated Cognizant Technology Solutions Corporation (NASDAQ:CTSH) on Monday, September 26 with "Buy" rating. Credit Suisse has "Outperform" rating and $100 target. The company was maintained on Thursday, October 12 by Cowen & Co.

Let's take a quick look at how the price of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is now trading in comparison to some of its simple moving averages. As a result, the company has an (Earning per Share) EPS growth of 14.55% for the coming year. FICO's profit will be $29.17M for 45.74 P/E if the $0.97 EPS becomes a reality. The information technology service provider reported $1.03 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $0.88 by $0.15.

Investors sentiment decreased to 0.97 in Q3 2017. Its up 0.03, from 1.27 in 2017Q2. It dived, as 20 investors sold FICO shares while 78 reduced holdings. BlackRock Inc. lifted its position in shares of Cognizant Technology Solutions by 3.1% during the 4th quarter. Capital Management Corp Va, a Virginia-based fund reported 69,167 shares. Cryder Cap Prns Llp holds 14.45% or 487,755 shares. Rothschild Asset Inc stated it has 172,852 shares.

Strategic investors have taken a closer look of late at shares of S&P Global Inc. Nordea Investment Management AB now owns 10,076,020 shares of the information technology service provider's stock valued at $730,914,000 after buying an additional 313,364 shares in the last quarter.

Petrus Trust Company Lta decreased its stake in Cognizant Technology Solutio (CTSH) by 3.47% based on its latest 2017Q3 regulatory filing with the SEC.

North Star Investment Management Corp. holds 1.7% of its portfolio in Acme United Corporation for 585,275 shares.

The Leverage Ratio of Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) is 0.059221. State Of Tennessee Treasury Department holds 0.09% or 230,828 shares in its portfolio. X Mgmt Limited owns 3,394 shares. Finemark National Bank & Trust And accumulated 77,931 shares or 0.38% of the stock. Quantitative Systematic Strategies Lc invested in 7,334 shares. The Volatility 3m of Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) is 16.858100. Fort Washington Invest Oh has invested 0% of its portfolio in Cognizant Technology Solutions Corporation (NASDAQ:CTSH). Choate Inv Advisors has 68,966 shares for 0.27% of their portfolio.

Since September 11, 2017, it had 0 insider buys, and 33 sales for $49.92 million activity. About 1.41M shares traded. The insider GOMATAM SUMITHRA sold 1,060 shares worth $85,326. KRISHNASWAMY VENKAT also sold $316,000 worth of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) shares. Over the last ninety days, insiders sold 626,836 shares of company stock valued at $47,866,540. On Tuesday, September 12 Veeraraghavachary Srinivasan sold $182,500 worth of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) or 2,500 shares. Also, CEO Francisco Dsouza sold 240,000 shares of the company's stock in a transaction dated Thursday, January 11th. The stock decreased 0.35% or $0.61 during the last trading session, reaching $177.48.

More notable recent Cognizant Technology Solutions Corporation (NASDAQ:CTSH) news were published by: which released: "Ex-Dividend Reminder: Cognizant Technology Solutions, Teradyne and Robert Half ..." on February 20, 2018, also with their article: "Elliott Buys Tiny Stake in Wipro in First India IT Firm Holding" published on March 12, 2018, published: "Cognizant Technology Solutions (CTSH) a Strong Buy at $81.61" on February 23, 2018.

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