Canada Pension Plan Investment Board Buys 251,242 Shares of CGI Group, Inc. $GIB

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 increased its stake in shares of CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A by 35.6% in the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 956,460 shares of the technology company's stock after buying an additional 251,242 shares during the period. Canada Pension Plan Investment Board owned about 0.42% of CGI Group worth $95,499,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of GIB. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its stake in shares of CGI Group by 1,190.6% in the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 845,916 shares of the technology company's stock worth $92,438,000 after purchasing an additional 780,370 shares in the last quarter. Bank of America Corp DE increased its stake in shares of CGI Group by 47.2% in the fourth quarter. Bank of America Corp DE now owns 736,901 shares of the technology company's stock worth $80,558,000 after purchasing an additional 236,333 shares in the last quarter. Nuveen LLC purchased a new position in shares of CGI Group in the first quarter worth about $16,126,000. Massachusetts Financial Services Co. MA increased 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 purchasing an additional 133,750 shares in the last quarter. Finally, Bessemer Group Inc. increased its stake in shares of CGI Group by 90.4% in the first quarter. Bessemer Group Inc. now owns 240,856 shares of the technology company's stock worth $24,068,000 after purchasing an additional 114,373 shares in the last quarter. Hedge funds and other institutional investors own 66.68% of the company's stock.

Analysts Set New Price Targets

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

CGI Group Price Performance

Shares of GIB stock traded up $0.71 during trading hours on Monday, reaching $97.13. The stock had a trading volume of 241,832 shares, compared to its average volume of 344,778. The stock's fifty day simple moving average is $99.27 and its 200 day simple moving average is $103.34. The company has a current ratio of 1.27, a quick ratio of 0.94 and a debt-to-equity ratio of 0.35. CGI Group, Inc. has a 12 month low of $92.85 and a 12 month high of $122.79. The firm has a market capitalization of $21.65 billion, a PE ratio of 17.95, a PEG ratio of 1.79 and a beta of 0.75.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its quarterly earnings data on Wednesday, July 30th. The technology company reported $1.52 EPS 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 company had revenue of $3 billion during the quarter, compared to analyst estimates of $4.01 billion. During the same period last year, the business earned $1.91 earnings per share. CGI Group's revenue was up 11.4% compared to the same quarter last year. On average, equities research analysts predict that CGI Group, Inc. will post 5.79 EPS for the current year.

CGI Group Increases Dividend

The business also recently announced 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. The ex-dividend date is Friday, August 15th. This is a boost from CGI Group's previous quarterly dividend of $0.11. This represents a $0.43 annualized dividend and a yield of 0.4%. CGI Group's dividend payout ratio (DPR) is presently 7.95%.

About CGI Group

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.