Does lightning strike twice? At Cognizant, it may.
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Synopsis
Nasdaq-listed Cognizant’s shares surged last week on speculation of the return of an activist shareholder. For CEO Ravi Kumar, there could not be worse news. This is not the first time an activist has taken a shot at Cognizant. In 2016, Elliott Management, which owned 4% stake in Cognizant, attempted to influence the company’s strategy before exiting in 2018.
Last week, the US-listed IT services company’s shares rose on reports that an activist shareholder could be circling it again. Japanese investment bank Nomura disclosed a 2.7% stake in the company. Don Bilson, head of event-driven research at Gordon Haskett, pointed out that Nomura typically acts as a broker for activist hedge funds and is ‘well-known for putting activists into stock’. “Cognizant looks like it could be ripe for activism,
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