CGI Group (NYSE:GIB) Reaches New 1-Year Low – Time to Sell?

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) hit a new 52-week low on Wednesday . The company traded as low as $61.67 and last traded at $62.04, with a volume of 44898 shares traded. The stock had previously closed at $63.19.

Analyst Upgrades and Downgrades

GIB has been the subject of a number of recent analyst reports. UBS Group cut their price objective on CGI Group from $79.00 to $70.00 and set a “neutral” rating for the company in a research report on Thursday, April 30th. Scotiabank initiated coverage on CGI Group in a research note on Tuesday, January 27th. They issued a “sector perform” rating on the stock. Weiss Ratings downgraded CGI Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 27th. Royal Bank Of Canada cut shares of CGI Group from an “outperform” rating to a “sector perform” rating and reduced their price objective for the stock from $150.00 to $100.00 in a research report on Thursday, April 30th. Finally, TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a report on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, CGI Group has a consensus rating of “Hold” and a consensus target price of $83.67.

CGI Group Stock Up 0.4%

The company has a market cap of $13.37 billion, a P/E ratio of 11.24 and a beta of 0.45. The stock has a 50-day moving average of $71.75 and a 200 day moving average of $81.33. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.95 and a quick ratio of 0.68.

CGI Group (NYSE:GIB) (TSE:GIB.A) last posted its quarterly earnings data on Wednesday, April 29th. The technology company reported $1.65 earnings per share for the quarter, hitting the consensus estimate of $1.65. CGI Group had a net margin of 10.26% and a return on equity of 18.72%. The business had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $3.05 billion. During the same quarter in the prior year, the business posted $2.12 earnings per share. CGI Group’s revenue was up 3.3% compared to the same quarter last year. Research analysts anticipate that CGI Group, Inc. will post 6.54 earnings per share for the current year.

CGI Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 15th. CGI Group’s dividend payout ratio is 9.03%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. First Horizon Corp acquired a new stake in CGI Group in the third quarter valued at approximately $29,000. Strive Financial Group LLC bought a new position in shares of CGI Group in the 4th quarter valued at $37,000. EverSource Wealth Advisors LLC boosted its holdings in shares of CGI Group by 53.3% during the 2nd 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 in the last quarter. Hughes Financial Services LLC bought a new stake in CGI Group during the 3rd quarter worth $174,000. Finally, Entropy Technologies LP bought a new stake in CGI Group during the 3rd quarter worth $236,000. 66.68% of the stock is owned by institutional investors.

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.