CGI Group, Inc. $GIB Shares Acquired by Canada Pension Plan Investment Board

Key Points

• The Canada Pension Plan Investment Board increased its stake in CGI Group by 35.6%, owning 956,460 shares valued at approximately $95.5 million.
• CGI Group reported $1.52 earnings per share for the last quarter, surpassing estimates, with a quarterly revenue of $3 billion, which was below expectations.
• The company has announced a quarterly dividend of $0.1086 per share, marking an increase from the previous dividend of $0.11.

Canada Pension Plan Investment Board raised its stake in shares of CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A by 35.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 956,460 shares of the technology company's stock after purchasing an additional 251,242 shares during the period. Canada Pension Plan Investment Board owned 0.42% of CGI Group worth $95,499,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of CGI Group by 1.2% in the first quarter. Vanguard Group Inc. now owns 8,037,045 shares of the technology company's stock worth $802,338,000 after buying an additional 94,266 shares in the last quarter. Mackenzie Financial Corp lifted its stake in shares of CGI Group by 0.9% in the first quarter. Mackenzie Financial Corp now owns 4,755,285 shares of the technology company's stock worth $474,702,000 after buying an additional 41,631 shares in the last quarter. Fiera Capital Corp lifted its stake in shares of CGI Group by 2.1% in the first quarter. Fiera Capital Corp now owns 4,380,743 shares of the technology company's stock worth $437,770,000 after buying an additional 89,458 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its stake in shares of CGI Group by 7.1% in the first quarter. Massachusetts Financial Services Co. MA now owns 2,028,147 shares of the technology company's stock worth $202,470,000 after buying an additional 133,750 shares in the last quarter. Finally, Groupe la Francaise lifted its stake in shares of CGI Group by 3.1% in the first quarter. Groupe la Francaise now owns 1,587,712 shares of the technology company's stock worth $157,596,000 after buying an additional 48,000 shares in the last quarter. 66.68% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on GIB. Royal Bank Of Canada decreased their price target on shares of CGI Group from $185.00 to $175.00 and set an "outperform" rating on the stock in a research note on Thursday, July 31st. UBS Group decreased their price target on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating on the stock in a research note on Thursday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $148.25.

CGI Group Trading Down 1.1%

Shares of GIB traded down $1.06 during trading on Thursday, reaching $95.37. 260,022 shares of the company traded hands, compared to its average volume of 326,162. CGI Group, Inc. has a twelve month low of $92.85 and a twelve month high of $122.79. The stock has a market cap of $21.26 billion, a PE ratio of 17.63, a price-to-earnings-growth ratio of 1.77 and a beta of 0.75. The stock has a 50-day simple moving average of $98.78 and a 200-day simple moving average of $103.07. The company has a quick ratio of 0.94, a current ratio of 1.27 and a debt-to-equity ratio of 0.35.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last announced its quarterly earnings results on Wednesday, July 30th. The technology company reported $1.52 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.01. CGI Group had a net margin of 11.01% and a return on equity of 18.53%. The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $4.01 billion. During the same period last year, the business earned $1.91 earnings per share. The business's revenue for the quarter was up 11.4% on a year-over-year basis. On average, analysts anticipate that CGI Group, Inc. will post 5.79 earnings per share for the current year.

CGI Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, August 15th will be given a dividend of $0.1086 per share. This is a boost from CGI Group's previous quarterly dividend of $0.11. This represents a $0.43 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Friday, August 15th. CGI Group's dividend payout ratio (DPR) is 7.95%.

CGI Group 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.