Zacks Investment Research Downgrades CGI Group (NYSE:GIB) to Sell

Zacks Investment Research cut shares of CGI Group (NYSE:GIB) (TSE:GIB.A) from a hold rating to a sell rating in a report published on Wednesday, April 11th.

According to Zacks, “CGI provides the full range of IT services including consulting, systems integration and the management of business and IT functions. The company’s primary focus is large scale systems integration and outsourcing contracts. “

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A number of other equities research analysts also recently issued reports on GIB. Barclays increased their price objective on shares of CGI Group from $60.00 to $63.00 and gave the stock an overweight rating in a research note on Thursday, February 1st. ValuEngine upgraded shares of CGI Group from a hold rating to a buy rating in a research note on Monday, February 5th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $71.00.

NYSE GIB opened at $58.64 on Wednesday. The firm has a market cap of $16,696.27, a price-to-earnings ratio of 19.99, a PEG ratio of 1.92 and a beta of 0.73. CGI Group has a 1 year low of $46.40 and a 1 year high of $59.89. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.70 and a current ratio of 0.99.

CGI Group (NYSE:GIB) (TSE:GIB.A) last released its quarterly earnings results on Wednesday, January 31st. The technology company reported $0.78 EPS for the quarter, hitting analysts’ consensus estimates of $0.78. CGI Group had a net margin of 9.50% and a return on equity of 17.54%. The business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.78 billion. During the same period last year, the firm earned $0.90 earnings per share. CGI Group’s revenue for the quarter was up 5.3% compared to the same quarter last year. equities research analysts anticipate that CGI Group will post 3.35 EPS for the current year.

CGI Group declared that its board has initiated a stock repurchase program on Wednesday, January 31st that permits the company to buyback 20,590,000 shares. This buyback authorization permits the technology company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Several large investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company grew its position in CGI Group by 58.2% in the 4th quarter. The Manufacturers Life Insurance Company now owns 3,315,530 shares of the technology company’s stock valued at $180,133,000 after purchasing an additional 1,219,578 shares during the period. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp boosted its holdings in shares of CGI Group by 17.5% in the 4th quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 1,452,800 shares of the technology company’s stock worth $99,226,000 after buying an additional 216,719 shares during the last quarter. Mackenzie Financial Corp boosted its holdings in shares of CGI Group by 164.4% in the 4th quarter. Mackenzie Financial Corp now owns 1,224,359 shares of the technology company’s stock worth $66,519,000 after buying an additional 761,285 shares during the last quarter. Franklin Resources Inc. boosted its holdings in shares of CGI Group by 284.0% in the 4th quarter. Franklin Resources Inc. now owns 1,044,010 shares of the technology company’s stock worth $56,763,000 after buying an additional 772,125 shares during the last quarter. Finally, AGF Investments Inc. boosted its holdings in shares of CGI Group by 6.4% in the 4th quarter. AGF Investments Inc. now owns 947,256 shares of the technology company’s stock worth $51,470,000 after buying an additional 57,316 shares during the last quarter. Institutional investors own 59.70% of the company’s stock.

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CGI Group Company Profile

CGI Group Inc provides information technology and business process services in Canada and internationally. It offers application development and maintenance, portfolio management, quality assurance and testing, modernization, and migration services; agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific business consulting services; business-to-business and customer operations support, purchase management, revenue management, and supplier payment services; and data center facilities and management, technical service desk, printing and document management, remote infrastructure, transformation, storage as a service, data vaulting, disaster recovery and archiving as a service, bottomless edge-to-core storage, and file sync and share as a service, as well as infrastructure solutions and consulting services.

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