CGI Group (NYSE:GIB) Reaches New 12-Month Low - What's Next?

Key Points

• 52-week low: CGI Group fell to a new 52-week low, trading as low as $69.09 and last at $66.45 on volume of about 108,453 shares, down from the prior close of $73.51.
• Analyst views are mixed: the firm counts one Strong Buy, one Buy, four Hold and one Sell, resulting in an average rating of Hold and an average price target of $112, while RBC still carries a $150 target.
• CGI missed earnings for the quarter (EPS $1.51 vs. $1.55 expected) and reported revenue of $2.96B versus estimates of $4.08B, though revenue was up 7.7% year-over-year and the company posted a 10.25% net margin and 18.61% ROE.

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 $69.09 and last traded at $66.4520, with a volume of 108453 shares traded. The stock had previously closed at $73.51.

Wall Street Analyst Weigh In

Several research firms recently issued reports on GIB. Scotiabank began coverage on shares of CGI Group in a research report on Tuesday, January 27th. They set a "sector perform" rating on the stock. Weiss Ratings lowered shares of CGI Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 27th. TD Securities upgraded shares of CGI Group to a "strong-buy" rating in a research report on Wednesday, January 28th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $150.00 price target on shares of CGI Group in a research report on Wednesday, April 1st. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, CGI Group currently has an average rating of "Hold" and an average price target of $112.00.

CGI Group Price Performance

The company has a debt-to-equity ratio of 0.28, a current ratio of 0.94 and a quick ratio of 0.70. The stock has a market cap of $13.33 billion, a price-to-earnings ratio of 11.66 and a beta of 0.58. The business's 50-day simple moving average is $73.21 and its two-hundred day simple moving average is $82.90.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last issued its earnings results on Wednesday, January 28th. The technology company reported $1.51 earnings per share for the quarter, missing analysts' consensus estimates of $1.55 by ($0.04). CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The company had revenue of $2.96 billion during the quarter, compared to analyst estimates of $4.08 billion. During the same quarter in the prior year, the business earned $1.97 EPS. The business's quarterly revenue was up 7.7% on a year-over-year basis. Research analysts expect that CGI Group, Inc. will post 6.51 earnings per share for the current year.

Institutional Trading of CGI Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC boosted its position in CGI Group by 786.2% in the first quarter. Millennium Management LLC now owns 81,470 shares of the technology company's stock valued at $8,141,000 after buying an additional 72,277 shares in the last quarter. Kepler Cheuvreux Suisse SA boosted its position in CGI Group by 7.5% in the fourth quarter. Kepler Cheuvreux Suisse SA now owns 78,358 shares of the technology company's stock valued at $7,232,000 after buying an additional 5,457 shares in the last quarter. Mediolanum International Funds Ltd boosted its position in CGI Group by 35.1% in the third quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company's stock valued at $5,972,000 after buying an additional 17,448 shares in the last quarter. Davis Rea LTD. boosted its position in CGI Group by 15.9% in the fourth quarter. Davis Rea LTD. now owns 42,200 shares of the technology company's stock valued at $3,900,000 after buying an additional 5,779 shares in the last quarter. Finally, Jane Street Group LLC boosted its position in CGI Group by 29.4% in the first quarter. Jane Street Group LLC now owns 12,858 shares of the technology company's stock valued at $1,284,000 after buying an additional 2,921 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.