Chief Executive Officer At Cognizant Tech Solns Sells $383K Of Stock

Ravi Kumar Singisetti, Chief Executive Officer at Cognizant Tech Solns (NASDAQ:CTSH), reported an insider sell on August 6, according to a new SEC filing.

What Happened: After conducting a thorough analysis, Singisetti sold 5,400 shares of Cognizant Tech Solns. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $383,675.

Cognizant Tech Solns shares are trading up 0.95% at $71.56 at the time of this writing on Thursday morning.

All You Need to Know About Cognizant Tech Solns

Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 350,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.

Cognizant Tech Solns: A Financial Overview

Revenue Growth: Cognizant Tech Solns's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 8.14%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 33.67%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Cognizant Tech Solns's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.31.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.08.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Cognizant Tech Solns's P/E ratio of 14.38 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.71, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 8.93, Cognizant Tech Solns's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Exploring Key Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Cognizant Tech Solns's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.