CGI Group (NYSE:GIB) Hits New 52-Week Low - Time to Sell?

Key Points

• New 52-week low: CGI Group shares fell to $69.66 and last traded at $70.19, trading below its 50-day ($74.91) and 200-day ($84.55) moving averages.
• Mixed analyst views: The consensus rating is a "Hold" with a $112 average target, while individual calls range from RBC's $150 "Outperform" to Weiss Ratings' "Sell."
• Quarterly miss: CGI reported EPS of $1.51 (vs. $1.55 expected) and revenue of $2.96B (vs. $4.08B expected), though revenue rose 7.7% year-over-year; the stock yields about 1.0% annually ($0.68).

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A reached a new 52-week low during trading on Thursday . The company traded as low as $69.66 and last traded at $70.1920, with a volume of 85211 shares. The stock had previously closed at $71.98.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Royal Bank Of Canada reissued an "outperform" rating and issued a $150.00 target price on shares of CGI Group in a research note on Wednesday, April 1st. Scotiabank assumed coverage on CGI Group in a report on Tuesday, January 27th. They set a "sector perform" rating on the stock. Canadian Imperial Bank of Commerce downgraded CGI Group from a "strong-buy" rating to a "hold" rating in a report on Sunday, December 14th. Weiss Ratings downgraded CGI Group from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. Finally, TD Securities raised CGI Group to a "strong-buy" rating in a report on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $112.00.

CGI Group Stock Performance

The stock has a market capitalization of $15.01 billion, a P/E ratio of 13.09 and a beta of 0.58. The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.28. The business has a fifty day moving average price of $74.91 and a 200-day moving average price of $84.55.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last announced its quarterly earnings results on Wednesday, January 28th. The technology company reported $1.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.55 by ($0.04). The business had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $4.08 billion. CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.97 earnings per share. On average, sell-side analysts expect that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Wednesday, February 18th were given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Wednesday, February 18th. CGI Group's dividend payout ratio is 9.36%.

Institutional Trading of CGI Group

Hedge funds have recently bought and sold shares of the company. First Horizon Corp purchased a new stake in CGI Group during the third quarter valued at $29,000. Strive Financial Group LLC purchased a new stake in CGI Group during the fourth quarter valued at $37,000. EverSource Wealth Advisors LLC increased its position in CGI Group by 53.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company's stock valued at $152,000 after acquiring an additional 505 shares during the last quarter. Steigerwald Gordon & Koch Inc. purchased a new stake in CGI Group during the third quarter valued at $144,000. Finally, Hughes Financial Services LLC purchased a new stake in CGI Group during the third quarter valued at $174,000. Hedge funds and other institutional investors own 66.68% of the company's stock.

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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