CGI Group, Inc. (NYSE:GIB) Receives $148.25 Consensus PT from Analysts

Key Points

• CGI Group, Inc. has received a consensus rating of "Buy" from various brokerages, with a 1-year price target of $148.25.
• The company's recent quarterly earnings report showed an earnings per share (EPS) of $1.52, slightly exceeding estimates, despite revenues falling short of expectations.
• CGI Group announced a quarterly dividend increase to $0.1086 per share, demonstrating confidence in its financial health with a low 7.95% payout ratio.

Shares of CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A have been assigned an average rating of "Buy" from the four analysts that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $148.25.

A number of brokerages have recently weighed in on GIB. Royal Bank Of Canada lowered their target price on CGI Group from $185.00 to $175.00 and set an "outperform" rating on the stock in a research note on Thursday, July 31st. UBS Group lowered their price objective on CGI Group from $112.00 to $105.00 and set a "neutral" rating on the stock in a research note on Thursday, July 31st.

CGI Group Stock Performance

Shares of NYSE GIB traded up $0.65 during trading hours on Monday, reaching $97.07. 138,171 shares of the stock were exchanged, compared to its average volume of 284,365. The firm has a market capitalization of $21.64 billion, a price-to-earnings ratio of 17.93, a P/E/G ratio of 1.77 and a beta of 0.72. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.94 and a current ratio of 1.27. CGI Group has a 52 week low of $92.85 and a 52 week high of $122.79. The stock's fifty day simple moving average is $99.61 and its 200 day simple moving average is $103.92.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last announced its earnings results on Wednesday, July 30th. The technology company reported $1.52 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.01. The company had revenue of $3 billion for the quarter, compared to analyst estimates of $4.01 billion. CGI Group had a return on equity of 18.53% and a net margin of 11.01%.The firm's quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.91 earnings per share. Sell-side analysts predict that CGI Group will post 5.79 EPS for the current year.

CGI Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, August 15th will be paid a dividend of $0.1086 per share. This is a boost from CGI Group's previous quarterly dividend of $0.11. The ex-dividend date is Friday, August 15th. This represents a $0.43 dividend on an annualized basis and a yield of 0.4%. CGI Group's dividend payout ratio is 7.95%.

Hedge Funds Weigh In On CGI Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Beutel Goodman & Co Ltd. increased its stake in CGI Group by 13.0% during the 2nd quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company's stock worth $361,881,000 after acquiring an additional 397,005 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in CGI Group by 53.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company's stock worth $152,000 after buying an additional 505 shares during the period. Mediolanum International Funds Ltd lifted its holdings in CGI Group by 2.9% during the 2nd quarter. Mediolanum International Funds Ltd now owns 49,742 shares of the technology company's stock worth $5,151,000 after buying an additional 1,425 shares during the period. Ethic Inc. lifted its holdings in CGI Group by 11.9% during the 2nd quarter. Ethic Inc. now owns 7,092 shares of the technology company's stock worth $733,000 after buying an additional 752 shares during the period. Finally, Yousif Capital Management LLC lifted its stake in shares of 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 purchasing an additional 195 shares during the period. Institutional investors own 66.68% of the company's stock.

CGI Group Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.