Is CGI Group Inc. (USA) (GIB) a Good Buy?

Since CGI Group Inc. (USA) (NYSE:GIB) has witnessed falling interest from the smart money, it’s easy to see that there were a few funds who were dropping their full holdings in the third quarter. Interestingly, Neil Chriss’s Hutchin Hill Capital dropped the largest stake of the “upper crust” of funds monitored by Insider Monkey, totaling about $1.8 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund dropped about $1.2 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 5 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CGI Group Inc. (USA) (NYSE:GIB) but similarly valued. We will take a look at Autodesk, Inc. (NASDAQ:ADSK), Philippine Long Distance Telephone (ADR) (NYSE:PHI), Tiffany & Co. (NYSE:TIF), and Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). This group of stocks’ market caps match GIB’s market cap.

As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $646 million. That figure was $97 million in GIB’s case. Tiffany & Co. (NYSE:TIF) is the most popular stock in this table. On the other hand Philippine Long Distance Telephone (ADR) (NYSE:PHI) is the least popular one with only 7 bullish hedge fund positions. CGI Group Inc. (USA) (NYSE:GIB) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TIF might be a better candidate to consider a long position.