CGI Group (NYSE:GIB) Sets New 52-Week Low - Here's What Happened

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's stock price reached a new 52-week low during trading on Thursday . The company traded as low as $92.10 and last traded at $92.77, with a volume of 51008 shares. The stock had previously closed at $92.44.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on GIB shares. Royal Bank Of Canada reduced their price target on shares of 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 cut their price objective on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating on the stock in a report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $148.25.

CGI Group Stock Performance

The company has a quick ratio of 0.94, a current ratio of 1.27 and a debt-to-equity ratio of 0.35. The business has a fifty day simple moving average of $96.55 and a 200-day simple moving average of $101.72. The firm has a market cap of $20.84 billion, a P/E ratio of 17.28, a P/E/G ratio of 1.70 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 EPS for the quarter, topping the consensus estimate of $1.51 by $0.01. The company had revenue of $3 billion during the quarter, compared to the consensus estimate of $4.01 billion. CGI Group had a return on equity of 18.53% and a net margin of 11.01%.CGI Group's revenue for the quarter was up 11.4% on a year-over-year basis. During the same period last year, the company earned $1.91 EPS. On average, sell-side analysts predict that CGI Group, Inc. will post 5.79 EPS for the current fiscal year.

CGI Group Increases Dividend

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

Institutional Investors Weigh In On CGI Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. grew its holdings in CGI Group by 0.9% in the fourth quarter. Ameriprise Financial Inc. now owns 12,619 shares of the technology company's stock valued at $1,380,000 after purchasing an additional 115 shares during the period. Tidal Investments LLC grew its stake in shares of CGI Group by 10.4% in the fourth quarter. Tidal Investments LLC now owns 3,337 shares of the technology company's stock valued at $365,000 after buying an additional 315 shares in the last quarter. Vident Advisory LLC grew its stake in CGI Group by 43.0% during the 4th quarter. Vident Advisory LLC now owns 7,239 shares of the technology company's stock worth $792,000 after purchasing an additional 2,177 shares in the last quarter. Vise Technologies Inc. grew its stake in CGI Group by 49.3% during the 4th quarter. Vise Technologies Inc. now owns 5,315 shares of the technology company's stock worth $581,000 after purchasing an additional 1,755 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its holdings in CGI Group by 164.1% during the 4th quarter. Public Employees Retirement System of Ohio now owns 116,604 shares of the technology company's stock worth $12,752,000 after buying an additional 72,452 shares during the last quarter. 66.68% of the stock is currently owned by hedge funds and other institutional investors.

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.