Cognizant Technology Solutions announced the expansion of its share buyback program by $2 billion in an effort to enhance shareholder value amid a challenging economic landscape.
New Buyback Announcement
Cognizant Technology Solutions Corp (NASDAQ: CTSH) has increased its share buyback program by $2 billion, raising the total authorized amount to $3.1 billion. The company plans to repurchase $1.1 billion worth of shares this year, surpassing its previous target by $500 million. This decision aligns with Cognizant’s broader strategy to improve shareholder returns and addresses pressures from activist investor Mantle Ridge.
Market Reaction to Cognizant's Plans
Following the announcement, Cognizant’s shares saw a 1.7% uptick, reflecting investor confidence in the company’s financial strategy. The stock price reached $79.86 on March 25, 2025, indicating positive market reception to the buyback news.
Financial Metrics and Recommendations
Cognizant's financial metrics present a stable outlook, with a dividend yield of 1.59% and a low debt to equity ratio. The company’s market cap stands at $39.50 billion. Analysts maintain a 'hold' recommendation with a target mean price of $88.64, suggesting potential for further appreciation.
The buyback program expansion signals Cognizant's financial confidence and strengthens shareholder trust despite economic challenges.
