Group 1 Automotive, Inc. (NYSE:GPI) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Of 10 brokerages covering Group 1 Automotive, five rate it a buy, three a hold and two a sell. The average 12-month price target is $392.44, though several firms recently lowered targets or downgraded the stock.
• Quarterly results fell short of expectations: The company reported earnings of $9.61 per share versus the $10.60 consensus estimate, while revenue declined 5.6% year over year to $5.39 billion.
• Shares and shareholder activity: GPI recently traded at $301.91, up 6.2%, but remains well below its 52-week high of $488.39. Group 1 also announced a $0.55 quarterly dividend, and major shareholder Conifer Management purchased 26,561 shares.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) have received an average rating of "Hold" from the ten brokerages that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, three have given a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $392.4444.

GPI has been the topic of several research analyst reports. DA Davidson set a $425.00 target price on Group 1 Automotive in a research note on Friday, July 10th. Zacks Research downgraded shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Barclays lowered their target price on shares of Group 1 Automotive from $435.00 to $365.00 and set an "overweight" rating for the company in a research note on Wednesday, August 19th. Weiss Ratings downgraded shares of Group 1 Automotive from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Finally, UBS Group cut their price target on shares of Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating on the stock in a research note on Friday, July 10th.

Group 1 Automotive Trading Up 6.2%

NYSE:GPI opened at $301.91 on Friday. The stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of 12.57, a PEG ratio of 0.86 and a beta of 0.82. Group 1 Automotive has a 52 week low of $249.54 and a 52 week high of $488.39. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. The firm has a 50 day moving average of $289.44 and a 200 day moving average of $313.33.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.60 by ($0.99). Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%.The firm had revenue of $5.39 billion during the quarter, compared to analysts' expectations of $5.66 billion. During the same period in the prior year, the firm 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. As a group, sell-side analysts anticipate that Group 1 Automotive will post 38.96 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, September 1st. Group 1 Automotive's dividend payout ratio is presently 9.16%.

Insider Transactions at Group 1 Automotive

In other news, major shareholder Conifer Management, L.L.C. purchased 26,561 shares of the stock in a transaction on Wednesday, September 2nd. The stock was bought at an average price of $276.03 per share, with a total value of $7,331,632.83. Following the transaction, the insider owned 1,222,360 shares in the company, valued at $337,408,030.80. The trade was a 2.22% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently modified their holdings of the company. Johnson Financial Group Inc. acquired a new position in Group 1 Automotive in the 3rd quarter worth approximately $55,000. Aster Capital Management DIFC Ltd acquired a new stake in Group 1 Automotive during the 4th quarter valued at approximately $57,000. Global Retirement Partners LLC boosted its holdings in shares of Group 1 Automotive by 78.5% in the 4th quarter. Global Retirement Partners LLC now owns 191 shares of the company's stock valued at $75,000 after acquiring an additional 84 shares during the last quarter. Allworth Financial LP purchased a new stake in shares of Group 1 Automotive in the 2nd quarter valued at $75,000. Finally, State of Wyoming increased its stake in shares of Group 1 Automotive by 28.2% in the fourth quarter. State of Wyoming now owns 191 shares of the company's stock worth $75,000 after acquiring an additional 42 shares during the period. Institutional investors and hedge funds own 99.92% of the company's stock.

About Group 1 Automotive

Group 1 Automotive, Inc NYSE: GPI is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.

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