Goldman Sachs Group Inc. Acquires 658,925 Shares of CGI Group, Inc. $GIB

Key Points

• Goldman Sachs Group Inc. increased its holdings in CGI Group, Inc. by 275.3%, acquiring an additional 658,925 shares during the first quarter, giving it a total of 898,276 shares valued at approximately $89.7 million.
• CGI Group reported a 1.52 EPS for the last quarter, exceeding estimates of $1.51, but its quarterly revenue of $3 billion fell short of expectations of $4.01 billion.
• The company announced an increase in its quarterly dividend to $0.1086 per share, with a new annualized dividend yield of 0.5%, to be paid on September 19th to shareholders of record.

Goldman Sachs Group Inc. raised its holdings in CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A by 275.3% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 898,276 shares of the technology company's stock after purchasing an additional 658,925 shares during the period. Goldman Sachs Group Inc. owned approximately 0.40% of CGI Group worth $89,675,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Dynamic Technology Lab Private Ltd acquired a new position in shares of CGI Group in the 1st quarter valued at approximately $645,000. Millennium Management LLC raised its position in shares of 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. AQR Capital Management LLC acquired a new position in shares of CGI Group in the 1st quarter valued at approximately $347,000. Amundi raised its position in shares of CGI Group by 5.2% in the 1st quarter. Amundi now owns 358,628 shares of the technology company's stock valued at $35,985,000 after buying an additional 17,740 shares in the last quarter. Finally, Federation des caisses Desjardins du Quebec raised its position in shares of CGI Group by 22.5% in the 1st quarter. Federation des caisses Desjardins du Quebec now owns 4,933,984 shares of the technology company's stock valued at $491,725,000 after buying an additional 907,876 shares in the last quarter. 66.68% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

GIB has been the subject of several analyst reports. UBS Group dropped 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 report on Thursday, July 31st. Royal Bank Of Canada dropped 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 report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $148.25.

CGI Group Price Performance

GIB stock traded down $0.12 during trading on Thursday, reaching $92.32. 292,216 shares of the company were exchanged, compared to its average volume of 269,282. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.27 and a quick ratio of 0.94. CGI Group, Inc. has a twelve month low of $92.07 and a twelve month high of $122.79. The company has a 50-day moving average of $96.71 and a two-hundred day moving average of $101.82. The company has a market capitalization of $20.58 billion, a price-to-earnings ratio of 17.06, a P/E/G ratio of 1.70 and a beta of 0.75.

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

CGI Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.1086 per share. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from CGI Group's previous quarterly dividend of $0.11. This represents a $0.43 annualized dividend and a dividend yield of 0.5%. CGI Group's payout ratio is 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.