Cognizant Tech Solutions Short Interest Falls 9.65%, Analysts React

Wednesday, Aug 13, 2025 11:41 am ET1min read

Cognizant Technology Solutions (CTSH) has seen a 9.65% decline in its short percent of float, with 17.16 million shares sold short, representing 4.59% of all regular shares available for trading. The average number of days to cover short positions is 4.13 days. Compared to its peer group, CTSH has less short interest, with an average of 5.62% short interest as a percentage of float. This could be a bullish sign for the stock.

Cognizant Technology Solutions (CTSH) has seen a significant drop in its short interest, with the short percent of float decreasing by 9.65% to 4.59%. This decline is notable, as it represents 17.16 million shares sold short, which is 4.13 days to cover. Compared to its peer group, CTSH has relatively lower short interest, averaging 5.62% as a percentage of float [1].

This reduction in short interest could be interpreted as a bullish sign for the stock. Traders often use short interest as an indicator of market sentiment, with lower short interest often signaling less bearish sentiment and potentially higher future stock prices. However, it is essential to consider other factors, such as earnings reports and market conditions, when evaluating the stock's potential.

Cognizant's recent earnings report showed year-over-year growth in sales and net income, providing a positive backdrop for the stock. Additionally, the company's partnership with WRITER and the launch of AI Training Data Services underscore its commitment to industry-specific AI transformation, which could drive sustained demand for its specialized consulting and managed services [2].

While the decline in short interest is a positive development, investors should remain vigilant. Cognizant faces intense competition from technology vendors entering the consulting sector. Therefore, the stock's performance will depend on the company's ability to maintain its market position and adapt to evolving industry trends.

References:
[1] https://www.corporatecomplianceinsights.com/dismissal-fcpa-charges-against-execs-sends-early-sign-that-sec-will-follow-doj-lead/
[2] https://simplywall.st/stocks/us/software/nasdaq-ctsh/cognizant-technology-solutions/news/how-cognizants-ai-partnership-and-services-launch-could-infl

Cognizant Tech Solutions Short Interest Falls 9.65%, Analysts React

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