CGI Inc. (NYSE:GIB) Announces Dividend Increase – $0.11 Per Share

CGI Inc. (NYSE:GIB) (TSE:GIB.A) declared a quarterly dividend on Thursday, May 1st, Wall Street Journal reports. Shareholders of record on Friday, May 16th will be given a dividend of 0.1086 per share by the technology company on Friday, June 20th. This represents a $0.43 annualized dividend and a yield of 0.40%. The ex-dividend date of this dividend is Friday, May 16th. This is a 4.6% increase from CGI’s previous quarterly dividend of $0.10.

CGI has a dividend payout ratio of 6.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect CGI to earn $6.28 per share next year, which means the company should continue to be able to cover its $0.43 annual dividend with an expected future payout ratio of 6.8%.

CGI Trading Down 0.2%

CGI stock opened at $107.66 on Wednesday. CGI has a 52 week low of $92.85 and a 52 week high of $122.79. The stock has a market cap of $24.41 billion, a PE ratio of 19.47, a P/E/G ratio of 2.58 and a beta of 0.78. The stock has a 50-day moving average price of $102.81 and a 200 day moving average price of $108.86. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.28.

CGI (NYSE:GIB) (TSE:GIB.A) last released its quarterly earnings results on Wednesday, April 30th. The technology company reported $1.48 earnings per share for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.02). The firm had revenue of $2.80 billion for the quarter, compared to analyst estimates of $4.05 billion. CGI had a net margin of 11.72% and a return on equity of 19.32%. CGI’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.97 earnings per share. Equities research analysts predict that CGI will post 5.79 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Royal Bank of Canada reissued an “outperform” rating and issued a $192.00 price objective on shares of CGI in a research note on Wednesday, March 26th. Jefferies Financial Group lowered their price objective on shares of CGI from $140.00 to $135.00 and set a “buy” rating on the stock in a research report on Tuesday, January 21st. Finally, UBS Group raised their price target on CGI from $118.00 to $122.00 and gave the stock a “neutral” rating in a research note on Monday, February 3rd. Two research analysts have rated the stock with a hold rating, two have issued a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $156.75.

CGI Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.