CGI (TSE:GIB.A) Shares Cross Below 200 Day Moving Average - Here's Why

Key Points

• CGI Inc's stock price has fallen below its 200-day moving average of C$139.87, trading as low as C$123.89 on Wednesday.
• Several analysts have downgraded their price targets for CGI, with Royal Bank of Canada lowering theirs from C$185.00 to C$175.00, while CIBC reduced theirs from C$183.00 to C$180.00.
• The company declared a quarterly dividend of $0.15 per share, resulting in an annualized yield of 0.5% and a payout ratio of 5.96%.

CGI Inc (TSE:GIB.A - Get Free Report) NYSE: GIB's stock price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$139.87 and traded as low as C$123.89. CGI shares last traded at C$125.37, with a volume of 428,858 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. CIBC decreased their price target on CGI from C$183.00 to C$180.00 in a report on Monday, July 21st. Royal Bank Of Canada decreased their price target on CGI from C$185.00 to C$175.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Finally, Desjardins cut their price objective on CGI from C$173.00 to C$166.00 and set a "buy" rating for the company in a research report on Tuesday, July 29th. Eight equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, CGI presently has a consensus rating of "Buy" and an average price target of C$179.40.

CGI Price Performance

The firm has a market capitalization of C$27.95 billion, a PE ratio of 16.61, a PEG ratio of 2.24 and a beta of 0.37. The stock has a 50-day moving average price of C$130.95 and a 200 day moving average price of C$139.87. The company has a quick ratio of 0.97, a current ratio of 1.16 and a debt-to-equity ratio of 34.24.

CGI Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 19th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Friday, August 15th. CGI's payout ratio is presently 5.96%.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,000 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.

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