CGI Group (NYSE:GIB) Hits New 1-Year Low - Here's Why

Key Points

• CGI Group's shares have reached a new 1-year low, trading at $90.67 before closing at $90.82, down from a previous close of $93.49.
• Analysts have adjusted their price targets, with Royal Bank of Canada reducing its target from $185.00 to $175.00 and UBS lowering its target from $112.00 to $105.00.
• CGI Group recently increased its quarterly dividend to $0.1086, marking a rise from the previous quarterly dividend of $0.11.

Shares of CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A hit a new 52-week low on Wednesday . The stock traded as low as $90.67 and last traded at $90.82, with a volume of 352828 shares changing hands. The stock had previously closed at $93.49.

Analysts Set New Price Targets

GIB has been the subject of several analyst reports. Royal Bank Of Canada dropped their target price on CGI Group from $185.00 to $175.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. UBS Group dropped their target price on CGI Group from $112.00 to $105.00 and set a "neutral" rating for the company in a report on Thursday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $148.25.

CGI Group Trading Down 2.9%

The company has a current ratio of 1.27, a quick ratio of 0.94 and a debt-to-equity ratio of 0.35. The firm has a fifty day simple moving average of $96.21 and a two-hundred day simple moving average of $101.56. The firm has a market cap of $20.25 billion, a PE ratio of 16.79, a PEG ratio of 1.72 and a beta of 0.75.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its quarterly earnings data on Wednesday, July 30th. The technology company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.01. CGI Group had a return on equity of 18.53% and a net margin of 11.01%.The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $4.01 billion. During the same quarter last year, the business posted $1.91 EPS. The business's revenue was up 11.4% on a year-over-year basis. Equities analysts forecast that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, August 15th were given a $0.1086 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a $0.43 annualized dividend and a dividend yield of 0.5%. This is an increase from CGI Group's previous quarterly dividend of $0.11. CGI Group's dividend payout ratio is currently 7.95%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in GIB. Federation des caisses Desjardins du Quebec raised its position in shares of CGI Group by 22.5% in the 1st quarter. Federation des caisses Desjardins du Quebec now owns 4,933,984 shares of the technology company's stock worth $491,725,000 after acquiring an additional 907,876 shares in the last quarter. Royal Bank of Canada raised its position in shares of CGI Group by 10.1% in the 1st quarter. Royal Bank of Canada now owns 8,151,753 shares of the technology company's stock worth $813,792,000 after acquiring an additional 747,918 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of CGI Group by 275.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 898,276 shares of the technology company's stock worth $89,675,000 after acquiring an additional 658,925 shares in the last quarter. Beutel Goodman & Co Ltd. raised its position in shares of CGI Group by 13.0% in 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 in the last quarter. Finally, Canada Pension Plan Investment Board raised its position in shares of CGI Group by 35.6% in the 1st quarter. Canada Pension Plan Investment Board now owns 956,460 shares of the technology company's stock worth $95,499,000 after acquiring an additional 251,242 shares in the last quarter. 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.

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