The Mantle Ridge’s activist investor builds more than $ 1 billion in the Cognizant share, WSJ reports

(Reuters) -Activist investor Mantle Ridge built a share of more than $ 1 billion consulting company Cognizant Technology, saying its shares were underestimated, Wall Street Journal reported on Friday.

The company’s shares, whose market capitalization is more than $ 41 billion, has increased over 5% in extended trading.

Mantle Ridge began buying a company’s shares in the second half of 2022, when the shares traded in a high 50 to low $ 60 to a share, the report added.

The activist company has privately dealt with Contacizant in terms of its progress in increasing the price price, according to the report, citing people who are familiar with the issue.

Last month, Cognizant predicted an annual revenue below the estimates, measured by a sudden consumption of IT companies as an uncertain economy and high interest rates under pressure.

“Members of our managerial team and the Committee are constructively engaged in Mantle Ridge since mid-2024, and Mantle Ridge has repeatedly reported support to our management and the Committee,” said a spokesman for the famous Reuters by e-mail.

Mantle Ridge did not immediately respond to Reuters’ comment request.

This engagement reflects a new approach to Mantle Ridge, who has been chosen so far to work behind the scene in Cognizant. He also does not plan to appoint any director to the Committee of the company, the WSJ report states.

The company intends to remain closely engaged with Cognizint’s management and believes that the company has more room for growth.

(Reporting Zaheer Kachwala in Bengalur; Mounting Alan Baron)