CGI Group (NYSE:GIB) Hits New 52-Week Low – What’s Next?

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

Wall Street Analyst Weigh In

Several brokerages have issued reports on GIB. Jefferies Financial Group reissued a “hold” rating and issued a $81.00 price target (down from $105.00) on shares of CGI Group in a research note on Monday, November 10th. Canadian Imperial Bank of Commerce cut CGI Group from a “strong-buy” rating to a “hold” rating in a research note on Sunday, December 14th. TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a research note on Wednesday, January 28th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CGI Group in a report on Monday, December 29th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of CGI Group in a research note on Monday, January 5th. One research 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $117.00.

CGI Group Price Performance

The firm has a market capitalization 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. The business has a 50 day simple moving average of $88.46 and a two-hundred day simple moving average of $90.12.

CGI Group (NYSE:GIB) (TSE:GIB.A) last issued its quarterly earnings data 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 analysts’ expectations 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 previous year, the firm posted $1.97 EPS. On average, sell-side analysts expect that CGI Group, Inc. will post 5.79 EPS for the current fiscal year.

CGI Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Wednesday, February 18th 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 0.9%. The ex-dividend date of this dividend is Wednesday, February 18th. CGI Group’s payout ratio is currently 8.99%.

Institutional Investors Weigh In On CGI Group

A number of large investors have recently added to or reduced their stakes in GIB. First Horizon Corp bought a new stake in CGI Group during the third quarter worth about $29,000. EverSource Wealth Advisors LLC grew its position in CGI Group by 53.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after buying an additional 505 shares during the period. Steigerwald Gordon & Koch Inc. bought a new position in CGI Group in the third quarter worth approximately $144,000. Hughes Financial Services LLC bought a new position in CGI Group in the third quarter worth approximately $174,000. Finally, Yousif Capital Management LLC boosted its stake in shares of CGI Group by 8.1% during the 2nd 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 last quarter. Hedge funds and other institutional investors 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.