Activist investor Mantle Ridge builds a more than $1 billion stake in Cognizant: Report

Activist investor Mantle Ridge has built a stake worth more than $1 billion in consultancy firm Cognizant Technology, saying its shares are undervalued, the Wall Street Journal reported on Friday.

Shares of the company, whose market capitalization stands at more than $41 billion, rose over 5% in extended trading.

Mantle Ridge started buying up shares of the company in the second half of 2022, when the stock was trading in the high $50 to low $60 per-share range, the report added.

The activist firm has been privately engaging with Cognizant about its…