Computer Modelling Group (TSE:CMG) Shares Down 18.3% - Here's Why

Key Points

• Computer Modelling Group (TSE:CMG) saw its stock price drop by 18.3%, closing at C$6.41 after trading as low as C$6.22 amid a significant increase in trading volume.
• Ventum Cap Mkts downgraded the company's stock from a "strong-buy" to a "hold" rating, with a consensus target price of C$13.14.
• The company recently declared a quarterly dividend of $0.05 per share, translating to a 3.1% dividend yield, while reporting a dividend payout ratio of 65.95%.

Shares of Computer Modelling Group Ltd. (TSE:CMG - Get Free Report) were down 18.3% during mid-day trading on Thursday . The company traded as low as C$6.22 and last traded at C$6.41. Approximately 1,336,123 shares were traded during trading, an increase of 603% from the average daily volume of 190,075 shares. The stock had previously closed at C$7.85.

Wall Street Analyst Weigh In

Separately, Ventum Cap Mkts downgraded Computer Modelling Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 22nd. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of C$12.83.

Computer Modelling Group Trading Down 0.5%

The company has a quick ratio of 2.25, a current ratio of 1.27 and a debt-to-equity ratio of 47.62. The stock's fifty day moving average price is C$7.31 and its two-hundred day moving average price is C$7.85. The company has a market capitalization of C$506.70 million, a PE ratio of 20.71, a price-to-earnings-growth ratio of 1.97 and a beta of 1.21.

Computer Modelling Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Friday, June 13th were paid a dividend of $0.05 per share. The ex-dividend date was Thursday, June 5th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 3.2%. Computer Modelling Group's payout ratio is 65.95%.

Insiders Place Their Bets

In related news, Senior Officer Pramod Jain bought 6,100 shares of the company's stock in a transaction on Tuesday, June 3rd. The shares were acquired at an average cost of C$4.99 per share, for a total transaction of C$30,455.47. Also, Director Kenneth Michael Dedeluk sold 20,000 shares of the company's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of C$7.00, for a total transaction of C$140,000.00. In the last 90 days, insiders have purchased 21,346 shares of company stock worth $136,969 and have sold 51,800 shares worth $363,190. Corporate insiders own 1.03% of the company's stock.

Computer Modelling Group Company Profile

Computer Modelling Group Ltd., a software and consulting technology company, engages in the development and licensing of reservoir simulation and seismic interpretation software and related services. The company offers CMOST-AI, an optimization and analysis tool that offers solution for reservoir by combining advanced statistical analysis, machine learning, and impartial data interpretation; IMEX, a black oil simulator that is used to model primary, secondary, and tertiary oil recovery processes in conventional and unconventional reservoirs; and GEM, an equation-of-state reservoir simulator for compositional, chemical, and unconventional reservoir modelling.