Scotiabank Brokers Decrease Earnings Estimates for CGI Group

Key Points

• Scotiabank lowered CGI Group’s FY2026 EPS estimate to $6.41 from $6.58, slightly above the $6.39 consensus forecast; it projects FY2027 EPS of $6.95.
• Analyst sentiment has weakened, with TD Securities and Royal Bank of Canada downgrading the stock and UBS cutting its price target. MarketBeat reports a consensus “Reduce” rating and an average target price of $83.67.
• CGI Group shares opened at $74.18, while the company announced a quarterly dividend of $0.17 per share, equivalent to a 0.9% annualized yield.

CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A - Investment analysts at Scotiabank reduced their FY2026 EPS estimates for CGI Group in a research report issued to clients and investors on Tuesday, August 4th. Scotiabank analyst K. Krishnaratne now anticipates that the technology company will post earnings per share of $6.41 for the year, down from their prior forecast of $6.58. The consensus estimate for CGI Group's current full-year earnings is $6.39 per share. Scotiabank also issued estimates for CGI Group's FY2027 earnings at $6.95 EPS.

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

CGI Group Price Performance

GIB stock opened at $74.18 on Friday. The firm has a 50 day simple moving average of $67.29 and a two-hundred day simple moving average of $71.62. The stock has a market cap of $15.69 billion, a PE ratio of 12.72 and a beta of 0.46. CGI Group has a one year low of $59.63 and a one year high of $97.55. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.93 and a quick ratio of 0.66.

CGI Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 14th will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. CGI Group's dividend payout ratio (DPR) is currently 8.06%.

Institutional Trading of CGI Group

Institutional investors have recently added to or reduced their stakes in the business. Strive Financial Group LLC bought a new position in shares of CGI Group during the fourth quarter valued at about $37,000. EverSource Wealth Advisors LLC boosted its holdings in CGI Group by 21.6% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,334 shares of the technology company's stock valued at $98,000 after acquiring an additional 237 shares during the period. Entropy Technologies LP purchased a new stake in CGI Group during the 3rd quarter valued at about $236,000. Venturi Wealth Management LLC bought a new position in CGI Group during the 1st quarter worth approximately $204,000. Finally, Glenmede Trust Co. NA grew its position in CGI Group by 38.3% during the 1st quarter. Glenmede Trust Co. NA now owns 3,409 shares of the technology company's stock worth $249,000 after acquiring an additional 944 shares during the last quarter. 66.68% of the stock is currently owned by hedge funds and other institutional investors.

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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