CGI Group (NYSE:GIB) Reaches New 1-Year Low - What's Next?

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.

Shares of CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A 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.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. UBS Group lowered their price target on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating for the company in a report 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 on the stock 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 assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $148.25.

CGI Group Stock Down 2.8%

The stock's 50-day moving average is $98.28 and its 200-day moving average is $102.54. 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 stock has a market cap of $20.71 billion, a P/E ratio of 17.17, a price-to-earnings-growth ratio of 1.77 and a beta of 0.75.

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 (EPS) 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 for the quarter, compared to analyst estimates of $4.01 billion. During the same quarter in the previous year, the firm posted $1.91 earnings per share. CGI Group's revenue was up 11.4% compared to the same quarter last year. As a group, research analysts anticipate that CGI Group, Inc. will post 5.79 earnings per share for the current fiscal year.

CGI Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, August 15th will be given a dividend of $0.1086 per share. This represents a $0.43 annualized dividend and a 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 is 7.95%.

Institutional Investors Weigh In On CGI Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. Beutel Goodman & Co Ltd. boosted 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 worth $361,881,000 after purchasing an additional 397,005 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake 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 acquiring an additional 505 shares during the period. Mediolanum International Funds Ltd boosted its holdings in shares of CGI Group by 2.9% during the 2nd quarter. Mediolanum International Funds Ltd now owns 49,742 shares of the technology company's stock worth $5,151,000 after buying an additional 1,425 shares during the period. Ethic Inc. increased its position in CGI Group by 11.9% in the 2nd quarter. Ethic Inc. now owns 7,092 shares of the technology company's stock valued at $733,000 after acquiring an additional 752 shares in the last quarter. Finally, Yousif Capital Management LLC raised its holdings 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 valued at $272,000 after purchasing an additional 195 shares during the last quarter. 66.68% of the stock is currently owned by hedge funds and other institutional investors.

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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