CGI Group (NYSE:GIB) Share Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• CGI Group shares moved above their 200-day moving average, reaching $71.70 before last trading at $70.92. The stock has a market capitalization of $14.69 billion and a P/E ratio of 12.17.
• Analyst sentiment remains cautious: TD Securities downgraded the shares to “hold,” Weiss Ratings maintained a “sell” rating, and the average analyst rating is “Reduce,” with an $83.67 price target.
• CGI declared a quarterly dividend of $0.17 per share, equivalent to a $0.68 annualized payout and a 1.0% yield. Institutional investors own 66.68% of the company, with several firms increasing their positions.

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A shares passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $70.13 and traded as high as $71.70. CGI Group shares last traded at $70.9230, with a volume of 259,385 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on GIB shares. TD Securities lowered shares of CGI Group from a "buy" rating to a "hold" rating in a research report on Thursday, July 23rd. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of CGI Group in a research report on Wednesday, June 24th. Six analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, CGI Group presently has an average rating of "Reduce" and an average price target of $83.67.

CGI Group Stock Down 1.7%

The company's 50-day moving average is $71.68 and its 200 day moving average is $70.13. The stock has a market capitalization of $14.69 billion, a PE ratio of 12.17 and a beta of 0.47. The company has a current ratio of 0.93, a quick ratio of 0.66 and a debt-to-equity ratio of 0.28.

CGI Group Announces Dividend

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. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Friday, August 14th. CGI Group's payout ratio is presently 8.23%.

Institutional Investors Weigh In On CGI Group

A number of large investors have recently made changes to their positions in the stock. Groupe la Francaise raised its stake in CGI Group by 0.9% in the 2nd quarter. Groupe la Francaise now owns 1,722,751 shares of the technology company's stock worth $111,335,000 after acquiring an additional 14,845 shares during the last quarter. QV Investors Inc. lifted its position in CGI Group by 31.2% during the 2nd quarter. QV Investors Inc. now owns 908,728 shares of the technology company's stock worth $58,716,000 after acquiring an additional 216,086 shares during the period. Wellington Management Group LLP grew its stake in CGI Group by 60.4% during the 2nd quarter. Wellington Management Group LLP now owns 213,433 shares of the technology company's stock valued at $13,791,000 after purchasing an additional 80,368 shares during the last quarter. Nykredit A S purchased a new stake in CGI Group during the 2nd quarter valued at about $2,918,000. Finally, Sequoia Financial Advisors LLC increased its holdings in shares of CGI Group by 16.0% in the second quarter. Sequoia Financial Advisors LLC now owns 36,485 shares of the technology company's stock valued at $2,356,000 after purchasing an additional 5,031 shares during the period. 66.68% of the stock is owned by hedge funds and other institutional investors.

About CGI Group

CGI Group Inc, also known as CGI, is a global information technology and business consulting company. It provides consulting, systems integration, application development and maintenance, managed IT services, and business process services to organizations in the public and private sectors.

The company helps clients with digital transformation, cloud computing, cybersecurity, enterprise resource planning, data and analytics, and modernization of legacy systems. CGI also develops and supports industry-specific software and technology solutions for areas such as government, financial services, telecommunications, healthcare, manufacturing, utilities, and transportation.

CGI was founded in 1976 in Montreal, Quebec, by Serge Godin and André Imbeau.

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