Is CGI Group Inc (GIB) Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. PDT Partners, led by Peter Muller, established the most valuable position in CGI Group Inc (NYSE:GIB). PDT Partners had $1.8 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also initiated a $1.7 million position during the quarter. The other funds with brand new GIB positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Joshua Packwood and Schuster Tanger’s Radix Partners, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as CGI Group Inc (NYSE:GIB) but similarly valued. These stocks are Alliance Data Systems Corporation (NYSE:ADS), Motorola Solutions Inc (NYSE:MSI), Quest Diagnostics Inc (NYSE:DGX), and Cenovus Energy Inc (USA) (NYSE:CVE). This group of stocks’ market caps match GIB’s market cap.

As you can see these stocks had an average of 26 funds with bullish positions and the average amount invested in these stocks was $841 million, which is higher compared to $122 million in GIB’s case. Alliance Data Systems Corporation (NYSE:ADS) is the most popular stock in this table, while Cenovus Energy Inc (USA) (NYSE:CVE) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks CGI Group Inc (NYSE:GIB) is even less popular than Cenovus Energy Inc (USA) (NYSE:CVE). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none