CGI Group (NYSE:GIB) Sets New 52-Week Low – Time to Sell?

Shares of CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) reached a new 52-week low during trading on Wednesday . The company traded as low as $72.33 and last traded at $73.0850, with a volume of 39284 shares. The stock had previously closed at $73.38.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of CGI Group in a report on Monday, January 5th. Jefferies Financial Group reaffirmed a “hold” rating and set a $81.00 price objective (down from $105.00) on shares of CGI Group in a report on Monday, November 10th. Canadian Imperial Bank of Commerce downgraded CGI Group from a “strong-buy” rating to a “hold” rating in a research report on Sunday, December 14th. TD Securities raised CGI Group to a “strong-buy” rating in a report on Wednesday, January 28th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CGI Group in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $117.00.

CGI Group Trading Up 1.0%

The firm has a market cap of $16.31 billion, a price-to-earnings ratio of 13.94 and a beta of 0.59. The business has a 50 day moving average of $87.48 and a 200 day moving average of $89.74. The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.28.

CGI Group (NYSE:GIB) (TSE:GIB.A) last released its earnings results on Wednesday, January 28th. The technology company reported $1.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.04). CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The firm had revenue of $2.96 billion during the quarter, compared to analysts’ expectations of $4.08 billion. During the same quarter last year, the company posted $1.97 earnings per share. CGI Group’s revenue for the quarter was up 7.7% on a year-over-year basis. On average, research analysts forecast that CGI Group, Inc. will post 5.79 earnings per share for the current fiscal year.

CGI Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Wednesday, February 18th will be given a dividend of $0.17 per share. The ex-dividend date is Wednesday, February 18th. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. CGI Group’s dividend payout ratio (DPR) is 9.36%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in GIB. Beutel Goodman & Co Ltd. boosted its holdings in shares of CGI Group by 13.0% during the second quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company’s stock worth $361,881,000 after purchasing an additional 397,005 shares during the last quarter. Millennium Management LLC lifted its position in CGI Group by 786.2% during the first quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock worth $8,141,000 after buying an additional 72,277 shares during the period. Kepler Cheuvreux Suisse SA boosted its stake in CGI Group by 7.5% in the 4th quarter. Kepler Cheuvreux Suisse SA now owns 78,358 shares of the technology company’s stock worth $7,232,000 after buying an additional 5,457 shares during the last quarter. Mediolanum International Funds Ltd grew its holdings in CGI Group by 35.1% in the 3rd quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company’s stock valued at $5,972,000 after buying an additional 17,448 shares during the period. Finally, Davis Rea LTD. grew its holdings in CGI Group by 15.9% in the 4th quarter. Davis Rea LTD. now owns 42,200 shares of the technology company’s stock valued at $3,900,000 after buying an additional 5,779 shares during the period. Hedge funds and other institutional investors own 66.68% of the company’s stock.

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.