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

CGI Group, Inc. (NYSE:GIB) (TSE:GIB.A)’s stock price hit a new 52-week low during trading on Wednesday . The stock traded as low as $83.75 and last traded at $84.51, with a volume of 321380 shares changing hands. The stock had previously closed at $88.23.

Key CGI Group News

Here are the key news stories impacting CGI Group this week:

• Positive Sentiment: Q1 results showed underlying strength — revenue CAD 4.08B (up 7.7% y/y), adjusted EBIT and adjusted EPS improved, operating cash flow of CAD 871.9M (21.4% of revenue), strong bookings and a CAD 31.32B backlog, which support near-term revenue visibility and cash generation. CGI reports first quarter Fiscal 2026 results
• Positive Sentiment: Board authorized renewal of the Normal Course Issuer Bid (NCIB) to repurchase shares, a shareholder-return action that can support EPS and provide a valuation floor over time. CGI renews its Normal Course Issuer Bid
• Positive Sentiment: Announced a global go-to-market alliance with OpenAI to help clients deploy advanced AI — a strategic growth catalyst if it drives larger enterprise engagements and higher-value services. CGI and OpenAI announce collaboration
• Neutral Sentiment: Corporate milestone messaging (50th anniversary) highlights brand and client positioning but is unlikely to move near-term fundamentals. CGI looks ahead after 50 years
• Neutral Sentiment: Scotiabank initiated coverage with a “sector perform” rating — provides fresh analyst attention but not a bullish endorsement. Scotiabank coverage
• Negative Sentiment: Reported EPS of $1.51 missed the Zacks consensus of $1.55 and revenue missed estimates, which is the primary driver of the intraday weakness as investors reacted to the shortfall versus expectations. CGI Group (GIB) Lags Q1 Earnings and Revenue Estimates
• Negative Sentiment: Market commentary and company filings/slide deck highlight the miss and provide detail to analysts — increased trading volume suggests short-term repositioning despite healthy cash metrics. Listen to Conference Call / View Slide Deck

Analyst Ratings Changes

Several equities research analysts have weighed in on GIB shares. Royal Bank Of Canada restated an “outperform” rating on shares of CGI Group in a research report on Monday, January 5th. Scotiabank began coverage on shares of CGI Group in a research report on Tuesday. They set a “sector perform” rating for the company. TD Securities upgraded shares of CGI Group to a “strong-buy” rating in a research note on Friday, October 3rd. Cibc Captl Mkts cut CGI Group from a “strong-buy” rating to a “hold” rating in a research report on Sunday, December 14th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of CGI Group in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $117.00.

CGI Group Trading Down 3.7%

The firm has a 50-day moving average of $91.02 and a two-hundred day moving average of $92.16. The firm has a market capitalization of $18.62 billion, a P/E ratio of 16.15 and a beta of 0.59. The company has a current ratio of 0.99, a quick ratio of 0.72 and a debt-to-equity ratio of 0.27.

CGI Group (NYSE:GIB) (TSE:GIB.A) last posted its earnings results on Wednesday, November 5th. The technology company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.53 by $0.02. The firm had revenue of $2.88 billion during the quarter, compared to analysts’ expectations of $4 billion. CGI Group had a net margin of 10.41% and a return on equity of 18.55%. The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.92 earnings per share. On average, analysts anticipate that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, November 21st were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.8%. This is an increase from CGI Group’s previous quarterly dividend of $0.11. The ex-dividend date was Friday, November 21st. CGI Group’s dividend payout ratio (DPR) is presently 9.13%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of GIB. Beutel Goodman & Co Ltd. boosted its holdings in 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 acquiring an additional 397,005 shares during the last quarter. Kepler Cheuvreux Suisse SA bought a new stake in CGI Group in the third quarter valued at $6,498,000. Millennium Management LLC increased its position in CGI Group by 786.2% in the 1st quarter. Millennium Management LLC now owns 81,470 shares of the technology company’s stock valued at $8,141,000 after buying an additional 72,277 shares in the last quarter. Mediolanum International Funds Ltd increased its holdings 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 valued at $5,972,000 after acquiring an additional 17,448 shares in the last quarter. Finally, Danske Bank A S acquired a new position in CGI Group during the third quarter worth $768,000. 66.68% of the stock is owned by 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.