CGI Group (NYSE:GIB) Downgraded to "Hold" Rating by TD Securities

Key Points

• TD Securities downgraded CGI Group from “buy” to “hold,” adding to a more cautious analyst tone around the stock.
• Other firms have also turned less bullish: RBC cut its rating to “sector perform,” UBS lowered its price target to $70, and the overall consensus now sits at “Reduce” with an average target price of $83.67.
• CGI Group recently reported quarterly EPS of $1.65, matching estimates, while revenue came in slightly below expectations at $2.99 billion; the stock was trading around $65.67, near its 50-day average and well below its 200-day average.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A was downgraded by equities researchers at TD Securities from a "buy" rating to a "hold" rating in a research report issued on Thursday, Marketbeat.com reports.

GIB has been the topic of a number of other research reports. Royal Bank Of Canada cut CGI Group from an "outperform" rating to a "sector perform" rating and lowered their price target for the stock from $150.00 to $100.00 in a report on Thursday, April 30th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of CGI Group in a research note on Wednesday, June 24th. Finally, UBS Group decreased their price objective on shares of CGI Group from $79.00 to $70.00 and set a "neutral" rating on the stock in a research report on Thursday, April 30th. Six investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $83.67.

CGI Group Stock Performance

Shares of GIB opened at $65.67 on Thursday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.68 and a current ratio of 0.95. The stock has a market capitalization of $13.89 billion, a P/E ratio of 11.85 and a beta of 0.48. The company's fifty day moving average is $66.01 and its two-hundred day moving average is $73.28. CGI Group has a 1 year low of $59.63 and a 1 year high of $103.04.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its earnings results on Wednesday, April 29th. The technology company reported $1.65 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.65. The company had revenue of $2.99 billion for the quarter, compared to analysts' expectations of $3.05 billion. CGI Group had a return on equity of 18.72% and a net margin of 10.26%.The firm's quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.12 EPS. On average, sell-side analysts predict that CGI Group will post 6.54 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in GIB. EverSource Wealth Advisors LLC boosted its position in shares of CGI Group by 21.6% in the first quarter. EverSource Wealth Advisors LLC now owns 1,334 shares of the technology company's stock worth $98,000 after buying an additional 237 shares during the period. SG Americas Securities LLC acquired a new stake in shares of CGI Group in the first quarter valued at about $470,000. Strive Financial Group LLC purchased a new stake in shares of CGI Group during the 4th quarter valued at about $37,000. Danske Bank A S purchased a new stake in shares of CGI Group during the 3rd quarter valued at about $768,000. Finally, Entropy Technologies LP acquired a new position in CGI Group during the 3rd quarter worth approximately $236,000. 66.68% of the stock is owned by hedge funds and other institutional investors.

About CGI Group

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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