CGI Group (NYSE:GIB) Hits New 1-Year Low – Should You Sell?

Shares of CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) hit a new 52-week low during trading on Wednesday . The stock traded as low as $77.73 and last traded at $77.3240, with a volume of 87041 shares trading hands. The stock had previously closed at $80.94.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on GIB. Weiss Ratings restated a “hold (c-)” rating on shares of CGI Group in a research note on Monday, December 29th. Scotiabank assumed coverage on shares of CGI Group in a research report on Tuesday, January 27th. They issued a “sector perform” rating on the stock. Canadian Imperial Bank of Commerce lowered shares of CGI Group from a “strong-buy” rating to a “hold” rating in a report on Sunday, December 14th. TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a research note on Wednesday, January 28th. Finally, Jefferies Financial Group restated a “hold” rating and set a $81.00 price target (down from $105.00) on shares of CGI Group in a research report on Monday, November 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $117.00.

CGI Group Price Performance

The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.28. The stock’s 50-day moving average price is $90.09 and its 200-day moving average price is $90.93. The company has a market capitalization of $16.70 billion, a price-to-earnings ratio of 14.28 and a beta of 0.59.

CGI Group (NYSE:GIB) (TSE:GIB.A) last issued its quarterly earnings results on Wednesday, January 28th. The technology company reported $1.51 earnings per share 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 company had revenue of $2.96 billion during the quarter, compared to analyst estimates of $4.08 billion. During the same period in the prior year, the business earned $1.97 EPS. The business’s revenue for the quarter was up 7.7% on a year-over-year basis. Equities research analysts anticipate that CGI Group, Inc. will post 5.79 earnings per share for the current year.

CGI Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Wednesday, February 18th will be issued a $0.17 dividend. The ex-dividend date is Wednesday, February 18th. This represents a $0.68 annualized dividend and a yield of 0.9%. CGI Group’s dividend payout ratio (DPR) is currently 9.18%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GIB. Beutel Goodman & Co Ltd. lifted its position in shares of CGI Group by 13.0% in the second quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company’s stock valued at $361,881,000 after buying an additional 397,005 shares during the last quarter. Kepler Cheuvreux Suisse SA bought a new stake in CGI Group in the 3rd quarter valued at $6,498,000. Millennium Management LLC lifted its holdings in CGI Group by 786.2% during the 1st quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock valued at $8,141,000 after purchasing an additional 72,277 shares during the last quarter. Mediolanum International Funds Ltd lifted its stake in shares of CGI Group by 35.1% during the 3rd quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company’s stock worth $5,972,000 after buying an additional 17,448 shares during the last quarter. Finally, Danske Bank A S bought a new stake in shares of CGI Group during the 3rd quarter worth about $768,000. 66.68% of the stock is currently owned by institutional investors and hedge funds.

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.