Group 1 Automotive (NYSE:GPI) Price Target Raised to $250.00

Key Points

• Morgan Stanley raised its price target on Group 1 Automotive from $232 to $250 but maintained an “underweight” rating, implying 6.29% downside from the share price cited in the report. Overall, analysts’ consensus rating is “Hold,” with a $330.10 average target.
• Quarterly results fell short of estimates: earnings per share were $9.36 versus $9.50 expected, and revenue was $5.40 billion versus $5.58 billion expected. Revenue declined 6.7% year over year.
• Insiders have been buying shares: company insiders purchased 820,030 shares worth about $211.5 million over the prior 90 days.

Group 1 Automotive (NYSE:GPI - Get Free Report) had its price objective raised by equities researchers at Morgan Stanley from $232.00 to $250.00 in a report issued on Monday, Benzinga reports. The firm currently has an "underweight" rating on the stock. Morgan Stanley's price objective suggests a potential downside of 6.29% from the company's current price.

A number of other equities research analysts have also recently commented on the stock. UBS Group dropped their price objective on shares of Group 1 Automotive from $271.00 to $259.00 and set a "neutral" rating on the stock in a research note on Thursday, October 29th. KeyCorp set a $425.00 target price on shares of Group 1 Automotive in a research note on Wednesday, October 7th. Seaport Research Partners set a $420.00 price target on shares of Group 1 Automotive in a report on Monday, August 3rd. Evercore set a $360.00 price target on shares of Group 1 Automotive in a research report on Tuesday, August 4th. Finally, Zacks Research cut shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Group 1 Automotive presently has a consensus rating of "Hold" and a consensus price target of $330.10.

Group 1 Automotive Stock Performance

Shares of GPI stock traded up $5.42 on Monday, hitting $266.77. The company had a trading volume of 29,794 shares, compared to its average volume of 201,056. Group 1 Automotive has a twelve month low of $224.65 and a twelve month high of $429.00. The company has a quick ratio of 0.57, a current ratio of 1.32 and a debt-to-equity ratio of 1.18. The firm has a market cap of $3.19 billion, a P/E ratio of 8.42, a price-to-earnings-growth ratio of 2.02 and a beta of 0.96. The company has a 50-day moving average price of $255.14 and a 200-day moving average price of $304.18.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $9.36 EPS for the quarter, missing the consensus estimate of $9.50 by ($0.14). Group 1 Automotive had a return on equity of 14.91% and a net margin of 1.75%. The company had revenue of $5.40 billion for the quarter, compared to analyst estimates of $5.58 billion. During the same period last year, the business earned $10.45 earnings per share. The firm's revenue was down 6.7% on a year-over-year basis. As a group, equities research analysts predict that Group 1 Automotive will post 37.40 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Conifer Management, L.L.C. purchased 133,472 shares of the company's stock in a transaction that occurred on Monday, September 28th. The shares were purchased at an average price of $243.58 per share, with a total value of $32,511,109.76. Following the purchase, the insider owned 1,772,050 shares of the company's stock, valued at $431,635,939. The trade was a 8.15% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders purchased 820,030 shares of company stock worth $211,496,571. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Group 1 Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. grew its holdings in Group 1 Automotive by 32.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 16,646 shares of the company's stock valued at $4,003,000 after buying an additional 4,099 shares in the last quarter. Maryland State Retirement & Pension System increased its stake in shares of Group 1 Automotive by 52.3% in the 3rd quarter. Maryland State Retirement & Pension System now owns 2,614 shares of the company's stock worth $629,000 after acquiring an additional 898 shares during the last quarter. Lido Advisors LLC raised its holdings in shares of Group 1 Automotive by 31.0% during the 3rd quarter. Lido Advisors LLC now owns 1,675 shares of the company's stock worth $403,000 after acquiring an additional 396 shares during the period. Fulcrum Asset Management LLP raised its holdings in shares of Group 1 Automotive by 5,944.4% during the 3rd quarter. Fulcrum Asset Management LLP now owns 1,088 shares of the company's stock worth $262,000 after acquiring an additional 1,070 shares during the period. Finally, Hohimer Wealth Management LLC acquired a new position in shares of Group 1 Automotive during the 3rd quarter valued at about $202,000. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. Founded in 1997, the company operates franchised dealerships and collision centers in the United States and the United Kingdom.

Its dealerships sell new and used vehicles from a range of manufacturers and provide related services, including vehicle maintenance and repair, parts sales, collision repair, and automotive financing and insurance products.

Group 1's business also includes manufacturer-authorized service operations and parts departments that support customers throughout vehicle ownership.

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