CGI Group (NYSE:GIB) Hits New 52-Week Low - Here's Why

Key Points

• CGI Group's shares hit a new 52-week low at $92.66 during trading, following a previous close of $95.57 and with a trading volume of 167,194 shares.
• Analysts have given CGI Group an average rating of “Buy” with a price target of $148.25, although some have downgraded their expectations recently, notably UBS lowering theirs from $112.00 to $105.00.
• The company recently increased its quarterly dividend to $0.1086 per share, indicating a positive shift from the previous dividend of $0.11.

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A's share price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $92.66 and last traded at $92.77, with a volume of 167194 shares trading hands. The stock had previously closed at $95.57.

Wall Street Analyst Weigh In

Several analysts recently commented on GIB shares. UBS Group cut their target price on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating for the company in a research note on Thursday, July 31st. Royal Bank Of Canada cut their target price on shares of CGI Group from $185.00 to $175.00 and set an "outperform" rating for the company in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $148.25.

CGI Group Trading Down 0.2%

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 market cap of $20.76 billion, a PE ratio of 17.22, a P/E/G ratio of 1.71 and a beta of 0.75. The company's 50-day moving average is $97.54 and its 200 day moving average is $102.09.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last announced its quarterly earnings data 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 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 analyst estimates of $4.01 billion. During the same period last year, the company earned $1.91 earnings per share. CGI Group's quarterly revenue was up 11.4% compared to the same quarter last year. As a group, sell-side analysts predict that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Increases Dividend

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of GIB. Federation des caisses Desjardins du Quebec raised its holdings in shares of CGI Group by 22.5% during the 1st quarter. Federation des caisses Desjardins du Quebec now owns 4,933,984 shares of the technology company's stock valued at $491,725,000 after purchasing an additional 907,876 shares in the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its holdings in shares of CGI Group by 1,190.6% during the 4th quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 845,916 shares of the technology company's stock valued at $92,438,000 after purchasing an additional 780,370 shares in the last quarter. Royal Bank of Canada raised its holdings in shares of CGI Group by 10.1% during the 1st quarter. Royal Bank of Canada now owns 8,151,753 shares of the technology company's stock valued at $813,792,000 after purchasing an additional 747,918 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of CGI Group by 275.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 898,276 shares of the technology company's stock valued at $89,675,000 after purchasing an additional 658,925 shares in the last quarter. Finally, Beutel Goodman & Co Ltd. raised its holdings in shares of CGI Group by 13.0% during the 2nd quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company's stock valued at $361,881,000 after purchasing an additional 397,005 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.