CGI Group (NYSE:GIB) Reaches New 1-Year Low – Here’s Why

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) reached a new 52-week low during trading on Wednesday . The stock traded as low as $90.67 and last traded at $90.82, with a volume of 352828 shares. The stock had previously closed at $93.49.

Wall Street Analyst Weigh In

Several research analysts have commented on GIB shares. Royal Bank Of Canada lowered their price target on shares of CGI Group from $185.00 to $175.00 and set an “outperform” rating for the company in a report on Thursday, July 31st. UBS Group lowered their price target on shares of CGI Group from $112.00 to $105.00 and set a “neutral” rating for the company in a report on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $148.25.

CGI Group Stock Performance

The company has a current ratio of 1.27, a quick ratio of 0.94 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $19.70 billion, a price-to-earnings ratio of 16.33, a PEG ratio of 1.69 and a beta of 0.75. The stock’s 50 day moving average price is $95.78 and its two-hundred day moving average price is $101.38.

CGI Group (NYSE:GIB) (TSE:GIB.A) last issued its quarterly earnings data on Wednesday, July 30th. The technology company reported $1.52 EPS for the quarter, beating analysts’ consensus estimates of $1.51 by $0.01. The firm had revenue of $3 billion for the quarter, compared to analysts’ expectations of $4.01 billion. CGI Group had a net margin of 11.01% and a return on equity of 18.53%. The firm’s revenue was up 11.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.91 EPS. On average, analysts forecast that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, August 15th were paid a $0.1086 dividend. This represents a $0.43 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Friday, August 15th. This is a positive change from CGI Group’s previous quarterly dividend of $0.11. CGI Group’s dividend payout ratio is currently 7.95%.

Institutional Investors Weigh In On CGI Group

Large investors have recently added to or reduced their stakes in the business. SVB Wealth LLC acquired a new stake in CGI Group in the 1st quarter valued at about $25,000. Fifth Third Bancorp lifted its holdings in CGI Group by 239.5% in the 1st quarter. Fifth Third Bancorp now owns 258 shares of the technology company’s stock valued at $26,000 after purchasing an additional 182 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in CGI Group by 292.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,005 shares of the technology company’s stock valued at $100,000 after purchasing an additional 749 shares in the last quarter. Versant Capital Management Inc lifted its holdings in CGI Group by 371.7% in the 1st quarter. Versant Capital Management Inc now owns 1,052 shares of the technology company’s stock valued at $105,000 after purchasing an additional 829 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in CGI Group by 53.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after purchasing an additional 505 shares in the last quarter. 66.68% of the stock is owned by institutional investors and hedge funds.

CGI Group Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.