CGI Group (NYSE:GIB) Shares Cross Above 200-Day Moving Average - Here's Why

Key Points

• CGI Group shares rose above their 200-day moving average, reaching $75.58 and last trading at $74.93, compared with a 200-day average of $70.67.
• Analysts have recently become more cautious: UBS, RBC and TD Securities lowered their ratings or price targets, while the consensus is now “Reduce” with an $83.67 target price.
• CGI declared a quarterly dividend of $0.17 per share, equal to an annualized $0.68 and a 0.9% yield; institutional investors and hedge funds own 66.68% of the company.

Shares of CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $70.67 and traded as high as $75.58. CGI Group shares last traded at $74.93, with a volume of 195,649 shares trading hands.

Analyst Ratings Changes

A number of research firms have recently weighed in on GIB. UBS Group cut their price target on CGI Group from $79.00 to $70.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. Weiss Ratings restated a "sell (d+)" rating on shares of CGI Group in a report on Wednesday, June 24th. Royal Bank Of Canada cut shares of CGI Group from an "outperform" rating to a "sector perform" rating and decreased their price target for the stock from $150.00 to $100.00 in a research note on Thursday, April 30th. Finally, TD Securities lowered shares of CGI Group from a "buy" rating to a "hold" rating in a research report on Thursday, July 23rd. Six investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $83.67.

CGI Group Price Performance

The company has a 50 day moving average of $68.70 and a 200 day moving average of $70.67. The stock has a market capitalization of $15.84 billion, a price-to-earnings ratio of 12.85 and a beta of 0.46. The company has a quick ratio of 0.66, a current ratio of 0.93 and a debt-to-equity ratio of 0.28.

CGI Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, August 14th will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.9%. CGI Group's dividend payout ratio is currently 8.23%.

Institutional Investors Weigh In On CGI Group

Hedge funds have recently modified their holdings of the stock. QV Investors Inc. increased its position in CGI Group by 31.2% during the second quarter. QV Investors Inc. now owns 908,728 shares of the technology company's stock worth $58,716,000 after purchasing an additional 216,086 shares during the last quarter. Wellington Management Group LLP boosted its holdings in CGI Group by 60.4% in the second quarter. Wellington Management Group LLP now owns 213,433 shares of the technology company's stock valued at $13,791,000 after acquiring an additional 80,368 shares during the last quarter. Millennium Management LLC grew its position in CGI Group by 786.2% during the first quarter. Millennium Management LLC now owns 81,470 shares of the technology company's stock valued at $8,141,000 after acquiring an additional 72,277 shares during the period. Nykredit A S acquired a new stake in CGI Group during the second quarter worth about $2,918,000. Finally, Hudson Portfolio Management LLC purchased a new position in shares of CGI Group in the 2nd quarter worth about $1,108,000. 66.68% of the stock is owned by institutional investors and hedge funds.

CGI Group Company Profile

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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