The Insider Activity Don’t Lie: Cognizant Technology Solutions Corporation (NASDAQ:CTSH)

Cognizant Technology Solutions Corporation (CTSH) up 0.25 per cent in the past week, is under coverage of 31 analysts who collectively recommend a buy rating on stock. 28 of the analysts have a buy or better rating; the 0 sells versus 0 underperforms. The 27 equity analysts who rate the stock have an average target price at $69.63, with individual targets ranging between $55 and $77. The shares closed last trade at $60.27, implying that analysts see shares rising about 15.53 per cent in 12 months’ time.

Insider Activity: Insiders look pessimistic about the prospects of the company that they seem to offload shares while they are 0.42 up so far this year. A CFO at Cognizant Technology Solutions Corporation (CTSH) sold shares in the company in a transaction completed on Wednesday June 08, 2016. Mcloughlin Karen offloaded 1,671 shares in the company at an average price of $61.13 and ended up generating $102,150 in proceeds. Mcloughlin Karen retains 49,349 shares in the company after this transaction. A President in the company, Coburn Gordon, on Tuesday June 07, 2016 collected $1,379,270 from the sale of 22,881 shares at $61.13 each. Insiders are expected to know better about the health and prospects of their company, which is why insiders’ move deserves attention.

Earnings to Watch: Investors considering CTSH stock at the going market price of $60.27/share should know the stock will next release quarterly results for the June 2016 quarter. For the reporting quarter, analysts expect the company to deliver $0.82 in earnings per share (EPS). That would represent a 3.8% year-over-year increase. Revenue for the same period is expected to arrive at $3.38B.

Earnings Roundup: In the last fiscal quarter alone, Cognizant Technology Solutions Corporation generated around $3.2B in revenue and net income of $0.8/share. That compares with the consensus estimate $3.23B and $0.79/share, respectively. For the prior quarter revenue for the company hit $3.23B, with earnings at $0.8/share.

Analyst Coverage: Sterne Agee CRT has been a brokerage house following shares of Cognizant Technology Solutions Corporation (CTSH), so its rating change is noteworthy. The stock was initiated at Neutral, wrote analysts at Sterne Agee CRT, in a note issued to clients on Thursday December 17, 2015. There was another key note issued by Cantor Fitzgerald on Friday October 16, 2015. The firm launched coverage on CTSH at Buy.

Price Momentum: Despite the -1.18% decrease in value, the stock’s new closing price represents a -13.65% fall in value from company’s one year high of $69.8. The stock is currently holding above its 50 day moving average of $-0.84 and below its 200 day moving average of $60.78. Over the last three months and over the last six months, the shares of Cognizant Technology Solutions Corporation (CTSH), have changed -1.71% and 59.77%, respectively.