Cognizant Technology stock rises amid speculation of activist investor following 13F filing

Cognizant Technology (NASDAQ: CTSH) experienced a 2% increase in its stock price recently, fueled by rumors that an activist investor was taking a stake in the company. Japanese bank Nomura has been known for their involvement with activist swap positions and placing activists into stocks, and they have just purchased 13.3 million shares of Cognizant in the first quarter of this year, making them the 7th largest shareholder of the company.

Nomura’s acquisition gives them a 2.75% stake in Cognizant, which is not their first involvement with the company. In fact, Elliott Management, an activist group, has had previous interest in Cognizant since 2016 when they took ownership of a stake in the company. They also wrote a letter to management at that time expressing potential interest in influencing the direction of the company.

With Nomura now holding a significant stake in Cognizant and Elliott Management having previously shown interest in the company, there is speculation about potential activism involvement in Cognizant’s future direction. Analysts believe that Cognizant may be seen as a target for activism due to its lower performance compared to its peer company Accenture (ACN), which has shown stronger results in recent years.

By Sophia Gonzalez

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