CGI (TSE:GIB.A) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• CGI shares crossed above their 200-day moving average, trading as high as C$105.41 and last changing hands at C$104.29, compared with a 200-day average of C$98.63.
• Analyst sentiment remains positive but mixed: seven analysts rate CGI a Buy and five rate it a Hold, producing a consensus “Moderate Buy” rating and an average price target of C$124.23.
• CGI reported quarterly earnings of C$2.29 per share on C$4.19 billion in revenue and declared a quarterly dividend of $0.17 per share, equivalent to a 0.7% annual yield.

Shares of CGI Inc (TSE:GIB.A - Get Free Report) NYSE: GIB passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$98.63 and traded as high as C$105.41. CGI shares last traded at C$104.29, with a volume of 541,974 shares.

Wall Street Analyst Weigh In

Several equities research analysts have commented on GIB.A shares. Desjardins boosted their price objective on CGI from C$117.00 to C$118.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Scotiabank lowered their price target on CGI from C$140.00 to C$120.00 and set a "sector perform" rating on the stock in a research note on Friday, April 24th. BMO Capital Markets dropped their price target on CGI from C$137.00 to C$122.00 and set an "outperform" rating for the company in a research report on Monday, April 27th. Sanford C. Bernstein reduced their price objective on CGI from C$143.00 to C$141.00 in a research note on Thursday, April 30th. Finally, Scotia decreased their price objective on CGI from C$120.00 to C$110.00 and set a "sector perform" rating on the stock in a report on Thursday, April 30th. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, CGI presently has a consensus rating of "Moderate Buy" and a consensus target price of C$124.23.

CGI Stock Performance

The company has a market cap of C$21.60 billion, a price-to-earnings ratio of 12.96, a P/E/G ratio of 2.24 and a beta of 0.14. The company has a current ratio of 1.16, a quick ratio of 0.97 and a debt-to-equity ratio of 34.24. The stock's fifty day simple moving average is C$95.10 and its 200 day simple moving average is C$98.63.

CGI (TSE:GIB.A - Get Free Report) NYSE: GIB last released its earnings results on Wednesday, July 29th. The company reported C$2.29 earnings per share for the quarter. The business had revenue of C$4.19 billion for the quarter. CGI had a net margin of 11.51% and a return on equity of 19.51%. As a group, analysts anticipate that CGI Inc will post 8.3679245 earnings per share for the current year.

CGI Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 18th will be given a dividend of $0.17 per share. The ex-dividend date is Friday, August 14th. This represents a $0.68 dividend on an annualized basis and a yield of 0.7%. CGI's dividend payout ratio (DPR) is presently 6.09%.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results.

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