Bank of America Corp DE Makes New $24.21 Million Investment in Group 1 Automotive, Inc. $GPI

Key Points

• Bank of America acquired 83,135 shares of Group 1 Automotive worth approximately $24.21 million, giving it a 0.70% stake. Institutional investors collectively own 99.92% of the company.
• Analysts have a mixed outlook, with Group 1 Automotive receiving an average rating of “Hold” and a consensus price target of $373.38, despite several recent target-price reductions.
• The company’s latest quarterly results fell short of expectations: adjusted EPS was $9.61 versus the $10.60 consensus, while revenue declined 5.6% year over year to $5.39 billion. Group 1 also pays a quarterly dividend of $0.55, representing a 0.9% yield.

Bank of America Corp DE acquired a new position in shares of Group 1 Automotive, Inc. (NYSE:GPI - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 83,135 shares of the company's stock, valued at approximately $24,206,000. Bank of America Corp DE owned approximately 0.70% of Group 1 Automotive at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. UBS Group decreased their price objective on Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating on the stock in a report on Friday, July 10th. Seaport Research Partners set a $420.00 target price on Group 1 Automotive in a report on Monday, August 3rd. Barclays cut their target price on Group 1 Automotive from $435.00 to $365.00 and set an "overweight" rating for the company in a research report on Wednesday, August 19th. JPMorgan Chase & Co. lowered Group 1 Automotive from an "overweight" rating to a "neutral" rating and decreased their price target for the company from $380.00 to $320.00 in a research note on Friday, July 31st. Finally, Morgan Stanley reiterated an "equal weight" rating and issued a $300.00 price target (down from $400.00) on shares of Group 1 Automotive in a research report on Friday, August 7th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Group 1 Automotive presently has an average rating of "Hold" and a consensus target price of $373.38.

Group 1 Automotive Price Performance

Shares of Group 1 Automotive stock opened at $248.27 on Thursday. The stock has a market capitalization of $2.96 billion, a price-to-earnings ratio of 10.34, a P/E/G ratio of 0.76 and a beta of 0.82. The firm's 50-day moving average price is $282.51 and its two-hundred day moving average price is $307.68. The company has a current ratio of 1.02, a quick ratio of 0.25 and a debt-to-equity ratio of 1.03. Group 1 Automotive, Inc. has a 1-year low of $246.21 and a 1-year high of $461.27.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) 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%. The business's revenue was down 5.6% on a year-over-year basis. During the same quarter last year, the firm posted $10.82 EPS. On average, equities analysts predict that Group 1 Automotive, Inc. will post 38.96 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

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

Insider Buying and Selling

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. bought 83,121 shares of the firm's stock in a transaction dated Thursday, September 3rd. The shares were bought at an average price of $282.63 per share, for a total transaction of $23,492,488.23. Following the completion of the acquisition, the insider owned 1,305,481 shares of the company's stock, valued at approximately $368,968,095.03. This trade represents a 6.80% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders acquired a total of 320,030 shares of company stock valued at $89,461,336 over the last quarter. 2.40% of the stock is currently owned by insiders.

Group 1 Automotive Profile

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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