CGI Group, Inc. (NYSE:GIB) Receives Average Rating of “Hold” from Brokerages

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A) has received an average recommendation of “Hold” from the seven analysts that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and one has issued a strong buy rating on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $83.6667.

Several research firms have commented on GIB. UBS Group decreased their price target on shares of CGI Group from $79.00 to $70.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. Scotiabank began coverage on shares of CGI Group in a research note on Tuesday, January 27th. They set a “sector perform” rating on the stock. Weiss Ratings downgraded shares of CGI Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 27th. Royal Bank Of Canada downgraded shares of CGI Group from an “outperform” rating to a “sector perform” rating and decreased their price target for the stock from $150.00 to $100.00 in a research note on Thursday, April 30th. Finally, TD Securities raised shares of CGI Group to a “strong-buy” rating in a research note on Wednesday, January 28th.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Mediolanum International Funds Ltd raised its stake in shares of CGI Group by 35.1% during the third quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company’s stock worth $5,972,000 after acquiring an additional 17,448 shares in the last quarter. Kepler Cheuvreux Suisse SA purchased a new position in shares of CGI Group in the third quarter worth $6,498,000. Millennium Management LLC increased its stake in shares of CGI Group by 786.2% in 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. Danske Bank A S purchased a new position in shares of CGI Group in the third quarter worth $768,000. Finally, Entropy Technologies LP purchased a new position in shares of CGI Group in the third quarter worth $236,000. 66.68% of the stock is owned by hedge funds and other institutional investors.

CGI Group Trading Up 0.8%

Shares of GIB opened at $65.95 on Friday. The firm’s 50 day simple moving average is $70.75 and its 200 day simple moving average is $80.54. The company has a market capitalization of $13.95 billion, a P/E ratio of 11.90 and a beta of 0.45. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.95 and a quick ratio of 0.68. CGI Group has a 1-year low of $60.80 and a 1-year high of $110.07.

CGI Group (NYSE:GIB) (TSE:GIB.A) last announced its earnings results on Wednesday, April 29th. The technology company reported $1.65 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.65. The business had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $3.05 billion. CGI Group had a net margin of 10.26% and a return on equity of 18.72%. CGI Group’s quarterly revenue was up 3.3% on a year-over-year basis. During the same period last year, the firm posted $2.12 earnings per share. Sell-side analysts forecast that CGI Group will post 6.54 earnings per share for the current fiscal year.

CGI Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. CGI Group’s dividend payout ratio (DPR) is 9.03%.

About CGI Group

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.