CGI Group, Inc. (NYSE:GIB) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Consensus "Hold": Seven analysts give CGI a consensus rating of "Hold" (1 sell, 4 hold, 1 buy, 1 strong buy) with an average 12‑month price target of $112, though recent notes range from TD Securities' "strong-buy" to Weiss Ratings' cut to "sell".
• Quarterly results and valuation: CGI reported Q1 EPS of $1.51 (vs. $1.55 expected) and revenue of $2.96B (vs. $4.08B expected); the stock trades around $76 with a market cap of $16.4B, a P/E of 14.3, and a 12‑month range of $69.40–$110.07.
• Dividend and ownership: CGI pays a quarterly dividend of $0.17 ($0.68 annualized, ~0.9% yield) and has about 66.7% institutional ownership, with several hedge funds recently adding or starting positions.

Shares of CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A have earned a consensus recommendation of "Hold" from the seven ratings firms that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $112.00.

Several brokerages recently commented on GIB. TD Securities raised shares of CGI Group to a "strong-buy" rating in a research note on Wednesday, January 28th. Royal Bank Of Canada reissued an "outperform" rating and issued a $150.00 price target on shares of CGI Group in a research note on Wednesday, April 1st. Scotiabank began coverage on shares of CGI Group in a research note on Tuesday, January 27th. They issued a "sector perform" rating for the company. Finally, Weiss Ratings cut shares of CGI Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th.

Hedge Funds Weigh In On CGI Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mediolanum International Funds Ltd grew its stake in CGI Group by 35.1% in the 3rd quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company's stock worth $5,972,000 after buying an additional 17,448 shares in the last quarter. Kepler Cheuvreux Suisse SA purchased a new position in CGI Group in the 3rd quarter worth approximately $6,498,000. Rossby Financial LCC grew its stake in CGI Group by 49,840.0% in the 3rd quarter. Rossby Financial LCC now owns 4,994 shares of the technology company's stock worth $449,000 after buying an additional 4,984 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in CGI Group by 53.3% in 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 in the last quarter. Finally, SG Americas Securities LLC purchased a new position in CGI Group in the 1st quarter worth approximately $470,000. Hedge funds and other institutional investors own 66.68% of the company's stock.

CGI Group Price Performance

Shares of NYSE:GIB opened at $76.37 on Monday. The company has a 50 day moving average of $73.46 and a 200 day moving average of $83.68. The stock has a market cap of $16.40 billion, a P/E ratio of 14.30 and a beta of 0.58. CGI Group has a 12 month low of $69.40 and a 12 month high of $110.07. The company has a current ratio of 0.94, a quick ratio of 0.70 and a debt-to-equity ratio of 0.28.

CGI Group (NYSE:GIB - Get Free Report) 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 firm had revenue of $2.96 billion for the quarter, compared to analysts' expectations of $4.08 billion. CGI Group had a net margin of 10.25% and a return on equity of 18.61%. CGI Group's revenue was up 7.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.97 EPS. As a group, sell-side analysts forecast that CGI Group will post 5.79 EPS for the current fiscal year.

CGI Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Wednesday, February 18th were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Wednesday, February 18th. CGI Group's payout ratio is currently 9.36%.

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.

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