CGI Group (NYSE:GIB) Hits New 1-Year Low After Earnings Miss

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) shares reached a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $83.75 and last traded at $84.51, with a volume of 321380 shares trading hands. The stock had previously closed at $88.23.

The technology company reported $1.51 EPS for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.04). CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The firm had revenue of $2.96 billion for the quarter, compared to analysts’ expectations of $4.08 billion. During the same quarter last year, the firm earned $1.97 earnings per share. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis.

CGI Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Wednesday, February 18th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, February 18th. CGI Group’s dividend payout ratio (DPR) is currently 8.99%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on GIB. Scotiabank began coverage on CGI Group in a research note on Tuesday. They issued a “sector perform” rating for the company. Weiss Ratings reissued a “hold (c-)” rating on shares of CGI Group in a research note on Monday, December 29th. Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a report on Monday, January 5th. Jefferies Financial Group reaffirmed a “hold” rating and set a $81.00 price objective (down from $105.00) on shares of CGI Group in a research report on Monday, November 10th. Finally, TD Securities raised CGI Group to a “strong-buy” rating in a research report on Friday, October 3rd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $117.00.

Hedge Funds Weigh In On CGI Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Beutel Goodman & Co Ltd. boosted its holdings in shares of CGI Group by 13.0% during the 2nd quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company’s stock valued at $361,881,000 after acquiring an additional 397,005 shares during the last quarter. Kepler Cheuvreux Suisse SA purchased a new stake in CGI Group in the third quarter worth approximately $6,498,000. Millennium Management LLC grew its position in CGI Group by 786.2% in the 1st quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock worth $8,141,000 after purchasing an additional 72,277 shares during the period. Mediolanum International Funds Ltd raised its stake in CGI Group by 35.1% during the 3rd quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company’s stock valued at $5,972,000 after buying an additional 17,448 shares during the last quarter. Finally, Danske Bank A S bought a new position in shares of CGI Group during the 3rd quarter valued at $768,000. 66.68% of the stock is owned by institutional investors.

CGI Group Price Performance

The stock has a market capitalization of $18.80 billion, a P/E ratio of 16.06 and a beta of 0.59. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.72 and a current ratio of 0.94. The firm has a fifty day moving average price of $90.97 and a two-hundred day moving average price of $91.96.

About CGI Group

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.