After Today’s Bullish Options Activity, Is Cognizant Technology Solutions Corp’s Near-Term Analysis Positive?

 After Today's Bullish Options Activity, Is Cognizant Technology Solutions Corp's Near Term Analysis Positive?

In today’s session Cognizant Technology Solutions Corp (CTSH) registered an unusually high (2,575) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious CTSH increase. With 2,575 contracts traded and 41694 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: CTSH161021C00050000 closed last at: $1.1 or 38.9% down. About 762,353 shares traded hands. Cognizant Technology Solutions Corp (NASDAQ:CTSH) has declined 13.67% since March 15, 2016 and is downtrending. It has underperformed by 19.15% the S&P500.

Analysts await Cognizant Technology Solutions Corp (NASDAQ:CTSH) to report earnings on November, 2. They expect $0.75 earnings per share, up 11.94% or $0.08 from last year’s $0.67 per share. CTSH’s profit will be $453.04 million for 16.63 P/E if the $0.75 EPS becomes a reality. After $0.79 actual earnings per share reported by Cognizant Technology Solutions Corp for the previous quarter, Wall Street now forecasts -5.06% negative EPS growth.

Cognizant Technology Solutions Corp (NASDAQ:CTSH) Ratings Coverage

Out of 19 analysts covering Cognizant Technology Solutions Corp. (NASDAQ:CTSH), 13 rate it a “Buy”, 1 “Sell”, while 5 “Hold”. This means 68% are positive. $82 is the highest target while $52 is the lowest. The $67.92 average target is 36.17% above today’s ($49.88) stock price. Cognizant Technology Solutions Corp. has been the topic of 32 analyst reports since August 6, 2015 according to StockzIntelligence Inc. CLSA downgraded the stock to “Underperform” rating in Wednesday, September 14 report. Argus Research maintained the stock with “Buy” rating in Tuesday, August 11 report. Jefferies maintained Cognizant Technology Solutions Corp (NASDAQ:CTSH) on Monday, October 10 with “Buy” rating. Cowen & Co initiated the shares of CTSH in a report on Friday, February 19 with “Outperform” rating. The stock of Cognizant Technology Solutions Corp (NASDAQ:CTSH) has “Buy” rating given on Thursday, September 10 by Suntrust Robinson. As per Thursday, November 5, the company rating was maintained by Monness Crespi & Hardt. As per Thursday, September 15, the company rating was downgraded by Goldman Sachs. The rating was maintained by RBC Capital Markets on Tuesday, February 9 with “Outperform”. The rating was upgraded by Zacks to “Sell” on Monday, August 10. Argus Research downgraded the shares of CTSH in a report on Friday, September 30 to “Hold” rating.

According to Zacks Investment Research, “Cognizant Technology Solutions delivers high-quality, cost-effective, full life cycle solutions to complex software development and maintenance problems that companies face as they transition to e-business. These services are delivered through the use of a seamless on-site and offshore consulting project team. The company’s solutions include application development and integration, application management, re-engineering, and mass change services.”

Insitutional Activity: The institutional sentiment increased to 0.97 in Q2 2016. Its up 0.12, from 0.85 in 2016Q1. The ratio improved, as 65 funds sold all Cognizant Technology Solutions Corp shares owned while 291 reduced positions. 67 funds bought stakes while 278 increased positions. They now own 506.90 million shares or 5.36% less from 535.62 million shares in 2016Q1.
Parkside Fincl Natl Bank last reported 0% of its portfolio in the stock. The Delaware-based Ashmore Wealth Mngmt Lc has invested 5.12% in Cognizant Technology Solutions Corp (NASDAQ:CTSH). Btc Cap holds 67,493 shares or 0.84% of its portfolio. Kerrisdale Advisers Limited Liability Co holds 3.11% or 339,186 shares in its portfolio. Martin Currie Limited has 2.64% invested in the company for 478,193 shares. Monetary Mngmt Gru reported 27,025 shares or 0.72% of all its holdings. Arrow holds 330 shares or 0% of its portfolio. Principal Fincl Group Inc Inc accumulated 853,852 shares or 0.07% of the stock. Taylor Frigon Mngmt Ltd last reported 1.58% of its portfolio in the stock. Virginia Retirement Et Al holds 368,800 shares or 0.31% of its portfolio. Independent Portfolio Consultants accumulated 0.19% or 10,396 shares. Evercore Wealth Mngmt Limited Liability Company has invested 0.01% of its portfolio in Cognizant Technology Solutions Corp (NASDAQ:CTSH). Glenmede Trust Na has 0.18% invested in the company for 519,052 shares. Dillon And Associates Inc owns 37,690 shares or 0.99% of their US portfolio. Wfg Advsrs L P holds 295 shares or 0% of its portfolio.

Insider Transactions: Since May 10, 2016, the stock had 0 insider purchases, and 15 insider sales for $40.01 million net activity. The insider Frank Malcolm sold $73,007. $759,218 worth of Cognizant Technology Solutions Corp (NASDAQ:CTSH) shares were sold by fox John nelson JR. The insider McLoughlin Karen sold 20,000 shares worth $1.20 million. $31,944 worth of Cognizant Technology Solutions Corp (NASDAQ:CTSH) was sold by Schwartz Steven on Tuesday, June 7. KLEIN JOHN E sold $3.75 million worth of stock. 22,881 shares with value of $1.38 million were sold by COBURN GORDON on Friday, June 3. DSOUZA FRANCISCO sold $17.49M worth of stock.

Cognizant Technology Solutions Corporation is a well-known provider of information technology , consulting and business process services. The company has a market cap of $30.13 billion. The Firm operates through four divisions: Financial Services, which includes clients providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies; Manufacturing, Retail and Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as clients providing logistics services, and Other, which includes communications, manufacturing/retail/logistics, and high technology. It has a 20.16 P/E ratio.

CTSH Company Profile

Cognizant Technology Solutions Corporation, incorporated on April 6, 1988, is a well-known provider of information technology (IT), consulting and business process services. The Firm operates through four divisions: Financial Services, which includes clients providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies; Manufacturing, Retail and Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as clients providing logistics services, and Other, which includes communications, manufacturing/retail/logistics, and high technology. The Company’s competencies include business, process, activities and IT consulting, application development and systems integration, enterprise information management, application testing, application maintenance and IT infrastructure services.

More notable recent Cognizant Technology Solutions Corp (NASDAQ:CTSH) news were published by: Finance.Yahoo.com which released: “SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Cognizant …” on October 14, 2016, also Fool.com with their article: “Why Cognizant Technology Solutions Stock Dropped 16.9% in September” published on October 11, 2016, Marketwatch.com published: “Cognizant Technology’s stock tumbles after disclosure of internal foreign …” on September 30, 2016. More interesting news about Cognizant Technology Solutions Corp (NASDAQ:CTSH) were released by: Fool.com and their article: “Why Shares of Cognizant Technology Solutions Corp. Slumped Today” published on September 30, 2016 as well as Prnewswire.com‘s news article titled: “Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Cognizant …” with publication date: October 13, 2016.

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