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

Key Points

• CGI Group's stock hit a new 52-week low of $87.08, down from a previous close of $90.15, amid cautious analyst sentiment and a low trading volume of 142,914 shares.
• Analysts have set new price targets, with UBS Group reducing theirs from $112 to $105, while the consensus rating remains a "Moderate Buy" with a target price of $138.33.
• The company recently declared a quarterly dividend, marking an increase from its previous payout, with a current yield of 0.5% and a payout ratio of 7.95%.

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A shares hit a new 52-week low on Wednesday . The company traded as low as $87.08 and last traded at $87.18, with a volume of 142914 shares trading hands. The stock had previously closed at $90.15.

Analysts Set New Price Targets

GIB has been the topic of a number of research analyst reports. UBS Group decreased their price target 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. Weiss Ratings reiterated a "hold (c)" rating on shares of CGI Group in a report on Wednesday, October 8th. Royal Bank Of Canada decreased their price target on shares of CGI Group from $185.00 to $175.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Finally, TD Securities raised shares of CGI Group to a "strong-buy" rating in a research note on Friday, October 3rd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $138.33.

CGI Group Price Performance

The stock has a market cap of $19.28 billion, a PE ratio of 15.99, a P/E/G ratio of 1.52 and a beta of 0.73. 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 company's 50 day moving average is $93.41 and its 200-day moving average is $100.36.

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

CGI Group Increases Dividend

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

Institutional Investors Weigh In On CGI Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GIB. SVB Wealth LLC bought a new stake in shares of CGI Group in the 1st quarter worth about $25,000. Fifth Third Bancorp increased its position in shares of CGI Group by 239.5% in the 1st quarter. Fifth Third Bancorp now owns 258 shares of the technology company's stock worth $26,000 after purchasing an additional 182 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of CGI Group by 292.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,005 shares of the technology company's stock worth $100,000 after purchasing an additional 749 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in shares of CGI Group by 53.3% in the 2nd 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 during the last quarter. Finally, Creekmur Asset Management LLC increased its position in shares of CGI Group by 7,051.9% in the 1st quarter. Creekmur Asset Management LLC now owns 1,931 shares of the technology company's stock worth $193,000 after purchasing an additional 1,904 shares during the last quarter. Hedge funds and other institutional investors own 66.68% of the company's stock.

About CGI Group

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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