By Connor Hart
Shares of Cognizant Technology Solutions rose after The Wall Street Journal reported that activist investor Mantle Ridge has built up a more than $1 billion stake in the company.
The stock gained 5.1% to $87.50 in after-hours trading Friday. Shares ended the regular session little changed and are up 8.4% in the past year.
Mantle Ridge believes shares of the tech-services firm are undervalued, the report said, citing people familiar with the matter. The activist firm, which has been privately engaging with Cognizant about its progress on boosting the share price, first began buying stock in the company in the back half of 2022.
Cognizant said in a statement that it has been constructively engaging with Mantle Ridge.
The Teaneck, N.J.-based company--which helps companies update their IT systems and outsource certain business functions--has grappled with stagnant growth in recent years, posting a 2% increase in revenue in 2024 after a slight decrease in 2023.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 07, 2025 17:38 ET (22:38 GMT)
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