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

by · The Markets Daily

CGI Group, Inc. (NYSE:GIBGet Free Report) (TSE:GIB.A) shares hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $77.73 and last traded at $77.3240, with a volume of 87041 shares changing hands. The stock had previously closed at $80.94.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CGI Group in a research note on Monday, December 29th. TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a report on Wednesday, January 28th. Jefferies Financial Group reiterated 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. Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a research report on Monday, January 5th. Finally, Scotiabank initiated coverage on CGI Group in a research report on Tuesday, January 27th. They issued a “sector perform” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $117.00.

Read Our Latest Stock Report on CGI Group

CGI Group Price Performance

The stock has a market cap of $16.34 billion, a price-to-earnings ratio of 13.96 and a beta of 0.59. The company has a current ratio of 0.94, a quick ratio of 0.70 and a debt-to-equity ratio of 0.28. The company’s fifty day moving average is $89.48 and its two-hundred day moving average is $90.71.

CGI Group (NYSE:GIBGet Free Report) (TSE:GIB.A) last released its quarterly earnings results on Wednesday, January 28th. The technology company reported $1.51 EPS for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.04). CGI Group had a return on equity of 18.61% and a net margin of 10.25%.The firm had revenue of $2.96 billion for the quarter, compared to analyst estimates of $4.08 billion. During the same quarter last year, the company earned $1.97 earnings per share. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis. As a group, research analysts predict that CGI Group, Inc. will post 5.79 earnings per share for the current year.

CGI Group Announces Dividend

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC purchased a new stake in CGI Group during the 1st quarter worth approximately $347,000. Millennium Management LLC grew its stake in shares of CGI Group by 786.2% in the first quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock worth $8,141,000 after acquiring an additional 72,277 shares in the last quarter. Jane Street Group LLC grew its stake in shares of CGI Group by 29.4% in the first quarter. Jane Street Group LLC now owns 12,858 shares of the technology company’s stock worth $1,284,000 after acquiring an additional 2,921 shares in the last quarter. Yousif Capital Management LLC increased its position in shares of CGI Group by 8.1% during the second quarter. Yousif Capital Management LLC now owns 2,591 shares of the technology company’s stock worth $272,000 after acquiring an additional 195 shares during the period. Finally, Ethic Inc. raised its stake in shares of CGI Group by 11.9% in the second quarter. Ethic Inc. now owns 7,092 shares of the technology company’s stock valued at $733,000 after acquiring an additional 752 shares in the last quarter. Hedge funds and other institutional investors own 66.68% of the company’s stock.

About CGI Group

(Get Free Report)

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.

Featured Articles