In recent trading, Cognizant Technology Solutions (CTSH, Financial) has experienced a notable rise in bearish options activity. A total of 2,932 put options have been traded, which is 1.5 times the anticipated volume. This reflects a growing sentiment towards the downside for the company's stock.
Particularly active are the April 2025 70 puts and the June 2025 60 puts, with combined trading volumes for these options nearing 2,700 contracts. This indicates a significant level of interest from investors expecting potential declines in the stock price.
The Put/Call Ratio, which measures the volume of puts traded versus calls, stands at 5.64, further highlighting the prevalent bearish outlook. Additionally, at-the-money implied volatility (IV) has increased by nearly 4 points during the day, suggesting heightened market anticipation of future price swings.
Investors are positioning themselves ahead of Cognizant's upcoming earnings announcement, scheduled for April 30th, which could significantly impact the stock's movement. The current activity in the options market suggests that traders are preparing for potential volatility around this event.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Cognizant Technology Solutions Corp (CTSH, Financial) is $86.89 with a high estimate of $103.00 and a low estimate of $76.00. The average target implies an upside of 23.98% from the current price of $70.08. More detailed estimate data can be found on the Cognizant Technology Solutions Corp (CTSH) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Cognizant Technology Solutions Corp's (CTSH, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cognizant Technology Solutions Corp (CTSH, Financial) in one year is $78.65, suggesting a upside of 12.23% from the current price of $70.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cognizant Technology Solutions Corp (CTSH) Summary page.
