Group 1 Automotive (NYSE:GPI) Shares Climb 7.4% – Should You Buy?

Group 1 Automotive, Inc. (NYSE:GPI – Get Free Report) shares shot up 7.4% on Thursday. The stock traded as high as $247.00 and last traded at $245.32. 19,191 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 199,461 shares. The stock had previously closed at $228.37.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on GPI shares. Morgan Stanley cut Group 1 Automotive from an “equal weight” rating to an “underweight” rating and reduced their target price for the company from $300.00 to $232.00 in a report on Monday, October 5th. Seaport Research Partners set a $420.00 price target on Group 1 Automotive in a research note on Monday, August 3rd. UBS Group cut their price objective on Group 1 Automotive from $330.00 to $271.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. DA Davidson set a $425.00 price objective on Group 1 Automotive in a research note on Friday, July 10th. Finally, Zacks Research lowered Group 1 Automotive from a “hold” rating to a “strong sell” rating in a research note on Monday, August 10th. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $341.67.

Get Our Latest Stock Report on GPI

Group 1 Automotive Trading Up 1.0%

The business’s 50-day moving average price is $258.61 and its 200 day moving average price is $298.93. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.02 and a quick ratio of 0.25. The firm has a market capitalization of $2.89 billion, a price-to-earnings ratio of 10.09, a PEG ratio of 0.74 and a beta of 0.92.

Group 1 Automotive (NYSE:GPI – Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $9.61 earnings per share for the quarter, missing the consensus estimate of $10.60 by ($0.99). Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The firm had revenue of $5.39 billion during the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter last year, the company posted $10.82 earnings per share. Group 1 Automotive’s revenue for the quarter was down 5.6% compared to the same quarter last year. On average, equities analysts forecast that Group 1 Automotive, Inc. will post 38.09 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.55 per share. The ex-dividend date was Tuesday, September 1st. This represents a $2.20 annualized dividend and a dividend yield of 0.9%. Group 1 Automotive’s dividend payout ratio (DPR) is currently 9.16%.

Insider Buying and Selling at Group 1 Automotive

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. bought 71,592 shares of the company’s stock in a transaction dated Wednesday, September 30th. The shares were acquired at an average cost of $242.03 per share, with a total value of $17,327,411.76. Following the completion of the transaction, the insider owned 1,912,290 shares in the company, valued at $462,831,548.70. The trade was a 3.89% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders bought 720,030 shares of company stock worth $187,264,264 in the last three months. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC purchased a new position in shares of Group 1 Automotive during the 2nd quarter valued at approximately $42,000. Anchor Investment Management LLC raised its holdings in Group 1 Automotive by 112.0% in the second quarter. Anchor Investment Management LLC now owns 212 shares of the company’s stock valued at $62,000 after acquiring an additional 112 shares in the last quarter. Allworth Financial LP acquired a new stake in Group 1 Automotive in the second quarter valued at $75,000. Group One Trading LLC acquired a new stake in Group 1 Automotive in the second quarter valued at $79,000. Finally, Global Retirement Partners LLC bought a new position in Group 1 Automotive during the 2nd quarter valued at $81,000. Hedge funds and other institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

(Get Free Report)

Group 1 Automotive, Inc is an international automotive retailer that operates franchised automobile dealerships. The company sells new and used vehicles from a range of manufacturers and provides related automotive services, including vehicle maintenance and repairs, parts and accessories, financing, and insurance products.

Founded in 1997 and headquartered in Houston, Texas, Group 1 Automotive serves customers through dealership operations in the United States and the United Kingdom, as well as other international markets.

Further Reading

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