CGI Group (NYSE:GIB) Reaches New 52-Week Low – Should You Sell?

Shares of CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) reached a new 52-week low on Wednesday . The stock traded as low as $72.33 and last traded at $73.0850, with a volume of 39284 shares. The stock had previously closed at $73.38.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on GIB shares. Canadian Imperial Bank of Commerce lowered CGI Group from a “strong-buy” rating to a “hold” rating in a report on Sunday, December 14th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CGI Group in a research report on Monday, December 29th. Scotiabank assumed coverage on shares of CGI Group in a research report on Tuesday, January 27th. They set a “sector perform” rating for the company. Jefferies Financial Group reissued a “hold” rating and set a $81.00 price target (down from $105.00) on shares of CGI Group in a research note on Monday, November 10th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of CGI Group in a research note on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, CGI Group currently has an average rating of “Hold” and an average target price of $117.00.

CGI Group Stock Up 0.6%

The stock’s fifty day simple moving average is $88.46 and its 200-day simple moving average is $90.12. The stock has a market cap of $16.17 billion, a P/E ratio of 13.78 and a beta of 0.59. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.70 and a current ratio of 0.94.

CGI Group (NYSE:GIB) (TSE:GIB.A) last announced its 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 for the quarter, compared to the consensus estimate of $4.08 billion. CGI Group had a return on equity of 18.61% and a net margin of 10.25%.The firm’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the prior year, the business posted $1.97 earnings per share. As a group, research analysts forecast that CGI Group, Inc. will post 5.79 earnings per share for the current fiscal year.

CGI Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Wednesday, February 18th will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, February 18th. CGI Group’s dividend payout ratio is presently 8.99%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GIB. Yousif Capital Management LLC increased its holdings in CGI Group by 8.1% in the 2nd quarter. Yousif Capital Management LLC now owns 2,591 shares of the technology company’s stock valued at $272,000 after buying an additional 195 shares during the period. First Horizon Corp acquired a new stake in shares of CGI Group during the 3rd quarter worth approximately $29,000. EverSource Wealth Advisors LLC increased its stake in CGI Group by 53.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after acquiring an additional 505 shares during the last quarter. Crestwood Advisors Group LLC raised its position in CGI Group by 14.2% during the fourth quarter. Crestwood Advisors Group LLC now owns 4,606 shares of the technology company’s stock valued at $425,000 after purchasing an additional 572 shares in the last quarter. Finally, Ethic Inc. lifted its stake in CGI Group by 11.9% during the second quarter. Ethic Inc. now owns 7,092 shares of the technology company’s stock worth $733,000 after purchasing an additional 752 shares during the last quarter. Institutional investors and hedge funds own 66.68% of the company’s stock.

CGI Group Company Profile

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.