Group 1 Automotive (NYSE:GPI) Given New $259.00 Price Target at UBS Group

Key Points

• UBS lowered its price target for Group 1 Automotive from $271 to $259 while maintaining a “neutral” rating, implying only 0.13% upside from the previous close.
• Group 1 Automotive’s third-quarter results missed expectations: EPS was $9.36 versus $9.50 expected, while revenue fell 6.7% year over year to $5.40 billion, below the $5.58 billion consensus.
• Analyst sentiment remains mixed, with the stock holding a consensus “Hold” rating and an average price target of $340.33; meanwhile, insiders and institutional investors have continued buying shares.

Group 1 Automotive (NYSE:GPI - Get Free Report) had its price target decreased by equities researchers at UBS Group from $271.00 to $259.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's price objective points to a potential upside of 0.13% from the stock's previous close.

GPI has been the subject of several other reports. JPMorgan Chase & Co. dropped their price objective on Group 1 Automotive from $275.00 to $260.00 and set a "neutral" rating for the company in a research report on Tuesday, October 6th. Evercore set a $360.00 target price on Group 1 Automotive in a research note on Tuesday, August 4th. Citigroup dropped their target price on shares of Group 1 Automotive from $387.00 to $357.00 and set a "buy" rating for the company in a report on Monday, September 28th. Weiss Ratings downgraded shares of Group 1 Automotive from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Finally, Zacks Research lowered shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Five analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $340.33.

Group 1 Automotive Stock Performance

Shares of GPI traded up $9.13 during mid-day trading on Thursday, hitting $258.67. 90,084 shares of the company's stock were exchanged, compared to its average volume of 201,483. Group 1 Automotive has a 52 week low of $224.65 and a 52 week high of $429.00. The stock's 50-day simple moving average is $254.78 and its 200-day simple moving average is $308.84. The firm has a market cap of $3.08 billion, a price-to-earnings ratio of 10.75, a price-to-earnings-growth ratio of 1.50 and a beta of 0.92. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $9.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $9.50 by ($0.14). The company had revenue of $5.40 billion during the quarter, compared to the consensus estimate of $5.58 billion. Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The company's quarterly revenue was down 6.7% on a year-over-year basis. During the same quarter last year, the firm posted $10.45 earnings per share. On average, equities research analysts expect that Group 1 Automotive will post 37.68 EPS for the current year.

Insider Activity

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. bought 133,472 shares of the firm's stock in a transaction that occurred on Monday, September 28th. The stock was acquired at an average price of $243.58 per share, with a total value of $32,511,109.76. Following the completion of the purchase, the insider directly owned 1,772,050 shares of the company's stock, valued at approximately $431,635,939. This trade represents a 8.15% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Over the last 90 days, insiders bought 820,030 shares of company stock valued at $211,496,571. 2.40% of the stock is owned by insiders.

Institutional Trading of Group 1 Automotive

Several large investors have recently made changes to their positions in GPI. BlackRock Inc. bought a new stake in Group 1 Automotive in the second quarter worth $593,420,000. Conifer Management L.L.C. bought a new position in shares of Group 1 Automotive during the second quarter valued at about $281,561,390. Lakewood Capital Management LP bought a new position in shares of Group 1 Automotive during the second quarter valued at about $72,098,000. The Manufacturers Life Insurance Company bought a new position in shares of Group 1 Automotive during the second quarter valued at about $57,174,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Group 1 Automotive in the second quarter worth about $27,000,000. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Group 1 Automotive

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Insider confidence provided a supportive signal: Conifer Management, L.L.C. reported purchases of 34,529 shares and 45,000 shares of GPI. Conifer Management buys 34,529 shares Conifer Management acquires 45,000 shares
• Positive Sentiment: Management highlighted continued growth opportunities during the third-quarter earnings call, which may be helping offset concerns about near-term profitability. Group 1 Automotive earnings call highlights
• Neutral Sentiment: Group 1 Automotive continues to have substantial scale, reporting $5.40 billion in quarterly revenue. Its valuation is relatively modest at roughly 10.8 times earnings, although leverage and thin margins remain important considerations for investors.
• Negative Sentiment: Third-quarter adjusted earnings came in at $9.36 per share, below estimates ranging from $9.50 to $9.65 and down from $10.45 a year earlier. GPI Q3 earnings miss estimates
• Negative Sentiment: Revenue of $5.40 billion also missed the $5.58 billion consensus forecast and declined 6.7% year over year. The results indicate weaker demand and squeezed margins, putting pressure on profitability. GPI stock falls as Q3 results squeeze margins

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.

In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.

Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.

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