Group 1 Automotive (NYSE:GPI) Given New $545.00 Price Target at Bank of America

Key Points

• Bank of America has reduced its price target for Group 1 Automotive from $560.00 to $545.00, indicating a potential upside of 14.89% from the current price despite maintaining a "buy" rating.
• Additionally, Zacks Research and Wall Street Zen have downgraded their ratings for the stock from "strong-buy" and "buy" to "hold," while other firms have slightly adjusted their price targets.
• Group 1 Automotive reported strong quarterly earnings with an EPS of $11.52, exceeding expectations, and its revenue rose by 21.4% year-over-year to $5.70 billion.

Group 1 Automotive (NYSE:GPI - Free Report) had its price objective reduced by Bank of America from $560.00 to $545.00 in a research note issued to investors on Wednesday morning,Benzinga reports. They currently have a buy rating on the stock.

GPI has been the topic of a number of other research reports. Wall Street Zen cut Group 1 Automotive from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Guggenheim cut Group 1 Automotive from a "buy" rating to a "neutral" rating in a research report on Wednesday, May 14th. Citigroup raised their price target on Group 1 Automotive from $463.00 to $495.00 and gave the stock a "buy" rating in a report on Tuesday, May 13th. Zacks Research lowered Group 1 Automotive from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Finally, Benchmark assumed coverage on Group 1 Automotive in a report on Tuesday, June 24th. They set a "hold" rating on the stock. Four analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Group 1 Automotive has an average rating of "Hold" and an average target price of $476.57.

Group 1 Automotive Stock Performance

Shares of GPI traded down $3.15 during midday trading on Wednesday, reaching $463.17. 69,924 shares of the stock were exchanged, compared to its average volume of 165,330. The business's 50-day moving average price is $447.56 and its 200 day moving average price is $429.50. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.05 and a quick ratio of 0.24. Group 1 Automotive has a twelve month low of $344.38 and a twelve month high of $490.09. The company has a market capitalization of $5.99 billion, a price-to-earnings ratio of 12.80, a PEG ratio of 1.18 and a beta of 0.86.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Thursday, July 24th. The company reported $11.52 EPS for the quarter, topping analysts' consensus estimates of $10.31 by $1.21. Group 1 Automotive had a return on equity of 18.10% and a net margin of 2.18%.The business had revenue of $5.70 billion for the quarter, compared to analysts' expectations of $5.65 billion. During the same quarter in the previous year, the firm earned $9.82 earnings per share. The business's revenue was up 21.4% compared to the same quarter last year. On average, sell-side analysts expect that Group 1 Automotive will post 41 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 2nd. Group 1 Automotive's payout ratio is currently 5.51%.

Insider Buying and Selling

In other news, Director Steven Mizell sold 525 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $417.98, for a total transaction of $219,439.50. Following the sale, the director owned 8 shares of the company's stock, valued at $3,343.84. The trade was a 98.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Lincoln Pereira sold 7,000 shares of the business's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $469.34, for a total value of $3,285,380.00. Following the sale, the director directly owned 82,967 shares in the company, valued at $38,939,731.78. This trade represents a 7.78% decrease in their position. The disclosure for this sale can be found here. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Group 1 Automotive

Institutional investors have recently modified their holdings of the company. MAI Capital Management boosted its stake in shares of Group 1 Automotive by 131.3% during the 2nd quarter. MAI Capital Management now owns 74 shares of the company's stock worth $32,000 after acquiring an additional 42 shares in the last quarter. Elequin Capital LP purchased a new stake in shares of Group 1 Automotive during the 1st quarter worth approximately $29,000. Signaturefd LLC raised its position in shares of Group 1 Automotive by 90.5% during the 2nd quarter. Signaturefd LLC now owns 80 shares of the company's stock worth $35,000 after purchasing an additional 38 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new position in shares of Group 1 Automotive during the 2nd quarter worth approximately $43,000. Finally, Bessemer Group Inc. raised its position in shares of Group 1 Automotive by 60.3% during the 1st quarter. Bessemer Group Inc. now owns 109 shares of the company's stock worth $41,000 after purchasing an additional 41 shares during the last quarter. Hedge funds and other institutional investors own 99.92% of the company's stock.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.