Advent International L.P. Invests $15.10 Million in Group 1 Automotive, Inc. $GPI

Key Points

• Advent International acquired 51,841 shares of Group 1 Automotive worth approximately $15.1 million, representing a 0.43% stake. Other institutional investors also initiated positions, and institutions collectively own 99.92% of the company.
• Group 1 Automotive reported quarterly EPS of $9.61, below the $10.60 consensus estimate, while revenue of $5.39 billion missed expectations and declined 5.6% year over year.
• The company declared a quarterly dividend of $0.55 per share, or $2.20 annualized, yielding about 0.8%. Analysts have a consensus “Hold” rating with an average price target of $392.44.

Advent International L.P. bought a new stake in Group 1 Automotive, Inc. (NYSE:GPI - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 51,841 shares of the company's stock, valued at approximately $15,095,000. Group 1 Automotive comprises about 0.1% of Advent International L.P.'s holdings, making the stock its 23rd biggest position. Advent International L.P. owned 0.43% of Group 1 Automotive at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in GPI. Man Group plc acquired a new stake in Group 1 Automotive in the second quarter worth $7,349,000. Jupiter Topco LLC bought a new stake in shares of Group 1 Automotive in the 2nd quarter valued at $1,380,000. Hsbc Holdings PLC bought a new position in Group 1 Automotive during the second quarter worth about $5,134,000. Palisade Capital Management LP acquired a new position in Group 1 Automotive in the second quarter valued at about $3,343,000. Finally, Lakewood Capital Management LP bought a new stake in shares of Group 1 Automotive in the second quarter worth about $72,098,000. Institutional investors own 99.92% of the company's stock.

Group 1 Automotive Price Performance

Shares of NYSE:GPI opened at $264.62 on Wednesday. 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 stock has a market cap of $3.15 billion, a PE ratio of 11.02, a PEG ratio of 0.78 and a beta of 0.82. The company's fifty day moving average is $295.34 and its 200 day moving average is $316.80. Group 1 Automotive, Inc. has a 52 week low of $249.54 and a 52 week high of $488.39.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $5.39 billion for 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%. The company's quarterly revenue was down 5.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $10.82 EPS. Research analysts anticipate that Group 1 Automotive, Inc. will post 38.96 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.55 per share. The ex-dividend date is Tuesday, September 1st. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. Group 1 Automotive's dividend payout ratio (DPR) is presently 9.16%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on GPI. Evercore set a $360.00 target price on Group 1 Automotive in a report on Tuesday, August 4th. Citigroup raised their target price on shares of Group 1 Automotive from $420.00 to $462.00 and gave the company a "buy" rating in a research report on Monday, May 11th. Benchmark reissued a "buy" rating on shares of Group 1 Automotive in a research report on Friday, July 10th. Morgan Stanley reaffirmed an "equal weight" rating and set a $300.00 price target (down from $400.00) on shares of Group 1 Automotive in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. cut Group 1 Automotive from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $380.00 to $320.00 in a report on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Group 1 Automotive has a consensus rating of "Hold" and an average price target of $392.44.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source