Group 1 Automotive, Inc. (NYSE:GPI) Stock Has Consensus Price Target of $360.25 According to Analysts

Key Points

• Analysts have a consensus “Hold” rating on Group 1 Automotive, with five buys, three holds and two sells. The average 12-month price target is $360.25, well above the stock’s reported $241.18 price.
• Major shareholder Conifer Management bought 83,121 shares for approximately $23.5 million, while insiders purchased more than $120.9 million in stock over the past 90 days. Institutional investors own 99.92% of the company.
• Group 1 Automotive’s latest quarterly results missed expectations: adjusted earnings were $9.61 per share versus $10.60 estimated, and revenue fell 5.6% year over year to $5.39 billion. The company also declared a $0.55 quarterly dividend, yielding about 0.9% annually.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) has received a consensus rating of "Hold" from the ten analysts that are currently covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $360.25.

GPI has been the topic of a number of recent research reports. Seaport Research Partners set a $420.00 price target on shares of Group 1 Automotive in a research report on Monday, August 3rd. UBS Group reduced their price objective on Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. DA Davidson set a $425.00 price target on shares of Group 1 Automotive in a research report on Friday, July 10th. Benchmark restated a "buy" rating on shares of Group 1 Automotive in a research report on Friday, July 10th. Finally, Evercore set a $360.00 price target on shares of Group 1 Automotive in a research report on Tuesday, August 4th.

Insider Activity

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. bought 83,121 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The shares were acquired at an average cost of $282.63 per share, for a total transaction of $23,492,488.23. Following the acquisition, the insider directly owned 1,305,481 shares of the company's stock, valued at $368,968,095.03. This trade represents a 6.80% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Over the last 90 days, insiders have purchased 446,318 shares of company stock valued at $120,985,919. Insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On Group 1 Automotive

A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth $593,420,000. Conifer Management L.L.C. purchased a new stake in shares of Group 1 Automotive during the second quarter valued at $281,561,390. Dimensional Fund Advisors LP boosted its position in shares of Group 1 Automotive by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 688,416 shares of the company's stock valued at $227,612,000 after purchasing an additional 10,100 shares during the period. Norges Bank acquired a new position in shares of Group 1 Automotive in the 4th quarter valued at $98,125,000. Finally, Lakewood Capital Management LP purchased a new position in Group 1 Automotive in the 2nd quarter worth about $72,098,000. Institutional investors and hedge funds own 99.92% of the company's stock.

Group 1 Automotive Trading Down 0.4%

Shares of NYSE GPI opened at $241.18 on Wednesday. The stock has a market capitalization of $2.87 billion, a P/E ratio of 10.05, a PEG ratio of 0.73 and a beta of 0.82. The stock's 50 day moving average price is $276.71 and its two-hundred day moving average price is $305.71. 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 has a 52-week low of $235.11 and a 52-week high of $461.27.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $9.61 earnings per share for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). The firm had revenue of $5.39 billion during the quarter, compared to the consensus estimate of $5.66 billion. Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. Group 1 Automotive's revenue was down 5.6% compared to the same quarter last year. During the same quarter last year, the firm posted $10.82 earnings per share. On average, analysts anticipate that Group 1 Automotive will post 38.96 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, September 1st. Group 1 Automotive's dividend payout ratio is presently 9.16%.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer that operates franchised dealerships in the United States and the United Kingdom. The company sells new and used vehicles from a broad range of manufacturers, including domestic, Asian and European brands.

In addition to vehicle sales, Group 1 Automotive provides automotive maintenance and repair services, sells replacement parts and accessories, and offers financing, insurance and other related products. Its dealerships also support customers through collision-repair operations and online vehicle purchasing tools.

Founded in 1997 and headquartered in Houston, Texas, Group 1 Automotive has expanded through dealership acquisitions and organic growth.

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