CGI Group (NYSE:GIB) Sets New 52-Week Low – Here’s Why

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A)’s share price hit a new 52-week low during trading on Tuesday . The stock traded as low as $83.61 and last traded at $82.5010, with a volume of 39928 shares trading hands. The stock had previously closed at $86.62.

Analyst Ratings Changes

GIB has been the subject of a number of research reports. Cibc Captl Mkts cut shares of CGI Group from a “strong-buy” rating to a “hold” rating in a research report on Sunday, December 14th. Weiss Ratings reissued a “hold (c-)” rating on shares of CGI Group in a report on Monday, December 29th. Scotiabank started coverage on CGI Group in a research note on Tuesday, January 27th. They set a “sector perform” rating on the stock. Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a research note on Monday, January 5th. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $81.00 price objective (down from $105.00) on shares of CGI Group in a report on Monday, November 10th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, CGI Group presently has a consensus rating of “Hold” and an average target price of $117.00.

CGI Group Stock Performance

The firm has a fifty day moving average of $90.94 and a 200-day moving average of $91.75. The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $17.39 billion, a price-to-earnings ratio of 14.86 and a beta of 0.59.

CGI Group (NYSE:GIB) (TSE:GIB.A) last posted its quarterly earnings results on Wednesday, January 28th. The technology company reported $1.51 EPS for the quarter, missing the consensus estimate of $1.55 by ($0.04). The business had revenue of $2.96 billion during the quarter, compared to analysts’ expectations of $4.08 billion. CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The firm’s quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.97 EPS. As a group, sell-side analysts anticipate that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Wednesday, February 18th will be issued a $0.17 dividend. The ex-dividend date is Wednesday, February 18th. This represents a $0.68 annualized dividend and a yield of 0.9%. CGI Group’s dividend payout ratio (DPR) is presently 8.99%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Mediolanum International Funds Ltd raised its holdings in CGI Group by 35.1% in the third quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company’s stock valued at $5,972,000 after acquiring an additional 17,448 shares in the last quarter. Beutel Goodman & Co Ltd. lifted its position in CGI Group by 13.0% in 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 purchasing an additional 397,005 shares during the last quarter. Yousif Capital Management LLC boosted its stake in CGI Group by 8.1% during the 2nd quarter. Yousif Capital Management LLC now owns 2,591 shares of the technology company’s stock valued at $272,000 after purchasing an additional 195 shares during the period. Davis Rea LTD. boosted its position in shares of CGI Group by 5.6% during the second quarter. Davis Rea LTD. now owns 34,141 shares of the technology company’s stock worth $3,572,000 after buying an additional 1,800 shares during the period. Finally, Prime Capital Investment Advisors LLC grew its holdings in CGI Group by 2.8% in the 2nd quarter. Prime Capital Investment Advisors LLC now owns 11,443 shares of the technology company’s stock worth $1,200,000 after buying an additional 314 shares in the last quarter. 66.68% of the stock is owned by hedge funds and other institutional investors.

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.