Cognizant ( (CTSH) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
Cognizant Technology Solutions’ stock has seen a notable movement due to activist investor Mantle Ridge acquiring a stake worth over $1 billion, viewing the stock as undervalued. Mantle Ridge’s strategy involves engaging with leadership to unlock growth potential rather than seeking board changes. Under CEO Ravi Kumar, appointed in January 2023, Cognizant has improved performance, achieving a 40% total shareholder return and focusing strategically on AI. This has led to a 5.13% surge in stock price to $87.50, indicating increased investor confidence despite past revenue challenges. However, analysts maintain a hold rating with a consensus price target of $90.91, indicating some potential for further growth.
More about Cognizant
YTD Price Performance: 8.60%
Average Trading Volume: 3,371,755
Technical Sentiment Consensus Rating: Strong Sell
Current Market Cap: $41.17B
For further insights into CTSH stock on TipRanks’ Stock Analysis page.
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