How to buy Cognizant Technology Solutions Corporation shares

Own Cognizant Technology Solutions Corporation shares in just a few minutes.

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Cognizant Technology Solutions Corporation (CTSH) is a leading information technology services business with stocks listed in the US. It opened the day at US$68.65 after a previous close of US$69.17. During the day the price has varied from a low of USD68.205 to a high of USD68.81. The latest price was USD68.32 (25 minute delay). Cognizant Technology Solutions Corporation is listed on the NASDAQ. All prices are listed in US Dollars.

How to buy shares in Cognizant Technology Solutions Corporation

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Cognizant Technology Solutions Corporation. Find the share by name or ticker symbol: CTSH. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Cognizant Technology Solutions Corporation reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$70.8, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Cognizant Technology Solutions Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Cognizant Technology Solutions Corporation. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Cognizant Technology Solutions Corporation share price

Use our graph to track the performance of CTSH stocks over time.

Cognizant Technology Solutions Corporation shares at a glance

Information last updated 2021-06-18.
OpenUS$68.65
HighUS$68.81
LowUS$68.205
CloseUS$68.32
Previous closeUS$69.17
Change US$-0.85
Change % -1.2289%
Volume 5,596,725
Information last updated 2021-06-17.
52-week rangeUS$52.4891 - US$82.2907
50-day moving average US$73.128
200-day moving average US$77.0001
Target priceUS$84.4
PE ratio 24.4132
Dividend yield US$0.9 (1.29%)
Earnings per share (TTM) US$2.846

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Cognizant Technology Solutions Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Cognizant Technology Solutions Corporation price performance over time

Historical closes compared with the last close of $68.32

1 week (2021-06-14) -3.49%
1 month (2021-05-21) -4.10%
3 months (2021-03-19) -10.75%
6 months (2020-12-18) -15.68%
1 year (2020-06-19) 26.14%
2 years (2019-06-20) 6.47%
3 years (2018-06-20) -13.32%
5 years (2016-06-20) 11.45%

Is Cognizant Technology Solutions Corporation under- or over-valued?

Valuing Cognizant Technology Solutions Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cognizant Technology Solutions Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cognizant Technology Solutions Corporation's P/E ratio

Cognizant Technology Solutions Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 24x. In other words, Cognizant Technology Solutions Corporation shares trade at around 24x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Cognizant Technology Solutions Corporation's PEG ratio

Cognizant Technology Solutions Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6279. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cognizant Technology Solutions Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Cognizant Technology Solutions Corporation's EBITDA

Cognizant Technology Solutions Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$2.9 billion.

The EBITDA is a measure of a Cognizant Technology Solutions Corporation's overall financial performance and is widely used to measure a its profitability.

Cognizant Technology Solutions Corporation financials

Revenue TTM US$16.8 billion
Operating margin TTM 14.35%
Gross profit TTM US$6.1 billion
Return on assets TTM 8.85%
Return on equity TTM 14.13%
Profit margin 9.09%
Book value 20.903
Market capitalisation US$36.6 billion

TTM: trailing 12 months

Shorting Cognizant Technology Solutions Corporation shares

There are currently 8.1 million Cognizant Technology Solutions Corporation shares held short by investors – that's known as Cognizant Technology Solutions Corporation's "short interest". This figure is 20.3% up from 6.7 million last month.

There are a few different ways that this level of interest in shorting Cognizant Technology Solutions Corporation shares can be evaluated.

Cognizant Technology Solutions Corporation's "short interest ratio" (SIR)

Cognizant Technology Solutions Corporation's "short interest ratio" (SIR) is the quantity of Cognizant Technology Solutions Corporation shares currently shorted divided by the average quantity of Cognizant Technology Solutions Corporation shares traded daily (recently around 4.8 million). Cognizant Technology Solutions Corporation's SIR currently stands at 1.68. In other words for every 100,000 Cognizant Technology Solutions Corporation shares traded daily on the market, roughly 1680 shares are currently held short.

However Cognizant Technology Solutions Corporation's short interest can also be evaluated against the total number of Cognizant Technology Solutions Corporation shares, or, against the total number of tradable Cognizant Technology Solutions Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cognizant Technology Solutions Corporation's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Cognizant Technology Solutions Corporation shares in existence, roughly 20 shares are currently held short) or 0.0154% of the tradable shares (for every 100,000 tradable Cognizant Technology Solutions Corporation shares, roughly 15 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cognizant Technology Solutions Corporation.

Find out more about how you can short Cognizant Technology Solutions Corporation stock.

Cognizant Technology Solutions Corporation's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cognizant Technology Solutions Corporation.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Cognizant Technology Solutions Corporation's total ESG risk score

Total ESG risk: 19.2

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cognizant Technology Solutions Corporation's overall score of 19.2 (as at 12/31/2018) is pretty good – landing it in it in the 27th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Cognizant Technology Solutions Corporation is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Cognizant Technology Solutions Corporation's environmental score

Environmental score: 0.04/100

Cognizant Technology Solutions Corporation's environmental score of 0.04 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Cognizant Technology Solutions Corporation is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Cognizant Technology Solutions Corporation's social score

Social score: 13.31/100

Cognizant Technology Solutions Corporation's social score of 13.31 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Cognizant Technology Solutions Corporation is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Cognizant Technology Solutions Corporation's governance score

Governance score: 6.35/100

Cognizant Technology Solutions Corporation's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Cognizant Technology Solutions Corporation is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Cognizant Technology Solutions Corporation's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Cognizant Technology Solutions Corporation scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cognizant Technology Solutions Corporation has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Cognizant Technology Solutions Corporation was last rated for ESG on: 2019-01-01.

Total ESG score 19.2
Total ESG percentile 26.96
Environmental score 0.04
Environmental score percentile 1
Social score 13.31
Social score percentile 1
Governance score 6.35
Governance score percentile 1
Level of controversy 2

Cognizant Technology Solutions Corporation share dividends

27%

Dividend payout ratio: 26.82% of net profits

Recently Cognizant Technology Solutions Corporation has paid out, on average, around 26.82% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.36% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cognizant Technology Solutions Corporation shareholders could enjoy a 1.36% return on their shares, in the form of dividend payments. In Cognizant Technology Solutions Corporation's case, that would currently equate to about $0.9 per share.

While Cognizant Technology Solutions Corporation's payout ratio might seem fairly standard, it's worth remembering that Cognizant Technology Solutions Corporation may be investing much of the rest of its net profits in future growth.

Cognizant Technology Solutions Corporation's most recent dividend payout was on 27 May 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 May 2021 (the "ex-dividend date").

Have Cognizant Technology Solutions Corporation's shares ever split?

Cognizant Technology Solutions Corporation's shares were split on a 2:1 basis on 9 March 2014. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cognizant Technology Solutions Corporation shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cognizant Technology Solutions Corporation shares which in turn could have impacted Cognizant Technology Solutions Corporation's share price.

Cognizant Technology Solutions Corporation share price volatility

Over the last 12 months, Cognizant Technology Solutions Corporation's shares have ranged in value from as little as US$52.4891 up to US$82.2907. A popular way to gauge a stock's volatility is its "beta".

CTSH.US volatility(beta: 1.15)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Cognizant Technology Solutions Corporation's is 1.1527. This would suggest that Cognizant Technology Solutions Corporation's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Cognizant Technology Solutions Corporation overview

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; and enhanced compliance, integrated health management, claims investigative services, and patient experience, as well as services that drive operational improvements in areas, such as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. The company also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and cloud, interactive, and IoT services to information, media and entertainment, and communications and technology companies. Cognizant Technology Solutions Corporation was founded in 1994 and is headquartered in Teaneck, New Jersey.

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