CGI Group (NYSE:GIB) Hits New 1-Year Low - Time to Sell?

Key Points

• CGI Group's stock hit a new 52-week low of $92.10, with several analysts revising their price targets down, indicating growing concerns about the company's performance.
• The company reported earnings of $1.52 per share, slightly above expectations, but quarterly revenue of $3 billion fell short of the $4.01 billion consensus estimate.
• CGI Group announced a quarterly dividend increase to $0.1086, reflecting a commitment to returning value to shareholders despite recent stock performance challenges.

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A shares hit a new 52-week low during trading on Thursday . The stock traded as low as $92.10 and last traded at $92.77, with a volume of 51008 shares traded. The stock had previously closed at $92.44.

Wall Street Analyst Weigh In

Several research analysts recently commented on GIB shares. Royal Bank Of Canada reduced their target price on shares of 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 price target on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating on the stock in a research report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $148.25.

CGI Group Stock Up 0.2%

The stock has a fifty day moving average of $96.92 and a two-hundred day moving average of $101.89. The firm has a market capitalization of $20.66 billion, a price-to-earnings ratio of 17.12, a P/E/G ratio of 1.72 and a beta of 0.75. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.27 and a quick ratio of 0.94.

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. CGI Group had a net margin of 11.01% and a return on equity of 18.53%. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter last year, the firm earned $1.91 earnings per share. CGI Group's quarterly revenue was up 11.4% on a year-over-year basis. Sell-side analysts anticipate that CGI Group, Inc. will post 5.79 earnings per share for the current year.

CGI Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, August 15th will be paid a $0.1086 dividend. This represents a $0.43 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Friday, August 15th. This is a positive change from CGI Group's previous quarterly dividend of $0.11. CGI Group's dividend payout ratio (DPR) is currently 7.95%.

Institutional Trading of CGI Group

Large investors have recently added to or reduced their stakes in the stock. Beutel Goodman & Co Ltd. increased its stake in shares of CGI Group by 13.0% in the second quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company's stock worth $361,881,000 after purchasing an additional 397,005 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of CGI Group by 53.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company's stock worth $152,000 after purchasing an additional 505 shares in the last quarter. Mediolanum International Funds Ltd increased its stake in shares of CGI Group by 2.9% in the second quarter. Mediolanum International Funds Ltd now owns 49,742 shares of the technology company's stock worth $5,151,000 after purchasing an additional 1,425 shares in the last quarter. Ethic Inc. increased its stake in shares of CGI Group by 11.9% in the second quarter. Ethic Inc. now owns 7,092 shares of the technology company's stock worth $733,000 after purchasing an additional 752 shares in the last quarter. Finally, Yousif Capital Management LLC increased its stake in shares of CGI Group by 8.1% in the second quarter. Yousif Capital Management LLC now owns 2,591 shares of the technology company's stock worth $272,000 after purchasing an additional 195 shares in the last quarter. Hedge funds and other 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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