Group 1 Automotive, Inc. $GPI Shares Purchased by Hsbc Holdings PLC

Key Points

• HSBC Holdings increased its Group 1 Automotive stake by 127.7% in the second quarter, owning 17,697 shares valued at approximately $5.1 million. Institutional investors 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 also missed expectations and declined 5.6% year over year.
• The company declared a quarterly dividend of $0.55 per share, representing a 0.8% yield, while analysts maintain a consensus “Hold” rating after several firms lowered their price targets.

Hsbc Holdings PLC grew its holdings in Group 1 Automotive, Inc. (NYSE:GPI - Free Report) by 127.7% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 17,697 shares of the company's stock after acquiring an additional 9,924 shares during the period. Hsbc Holdings PLC owned about 0.15% of Group 1 Automotive worth $5,134,000 as of its most recent SEC filing.

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

Group 1 Automotive Stock Performance

Shares of GPI stock opened at $287.57 on Thursday. The stock has a market capitalization of $3.43 billion, a price-to-earnings ratio of 11.98, a PEG ratio of 0.85 and a beta of 0.82. Group 1 Automotive, Inc. has a one year low of $249.54 and a one year high of $488.39. The company's 50-day simple moving average is $289.34 and its 200-day simple moving average is $312.30. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02.

Group 1 Automotive (NYSE:GPI - Get Free Report) last announced 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 firm had revenue of $5.39 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the previous year, the company earned $10.82 EPS. Equities analysts anticipate 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 announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 1st. Group 1 Automotive's dividend payout ratio is 9.16%.

Group 1 Automotive News Roundup

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Major shareholder increases GPI stake: Conifer Management purchased 57,159 shares at an average of $300.15, worth approximately $17.2 million, increasing its ownership by 4.38% to 1.36 million shares. It also bought 83,121 shares at an average of $282.63, a purchase valued at approximately $23.5 million and representing a 6.80% increase in its position. The buying signals confidence from a significant shareholder. Conifer Management share purchases
• Neutral Sentiment: New senior notes priced: Group 1 priced $1.25 billion of senior unsecured notes—$625 million due in 2032 at 6.250% and $625 million due in 2035 at 6.625%. The proceeds may provide capital for corporate needs or growth, but the transaction’s impact will depend on how the funds are used. Group 1 Automotive senior notes pricing
• Negative Sentiment: Financing adds leverage and interest expense: The debt issuance comes as GPI already reports a debt-to-equity ratio of 1.03 and weak liquidity ratios. Annual coupon payments on the new notes will total roughly $80.5 million, potentially pressuring future earnings and cash flow.
• Neutral Sentiment: One cited article concerns Lithia Motors, not GPI: Lithia’s record quarter, dividend increase and expanded buybacks may support sentiment toward auto retailers generally, but it does not provide a direct fundamental update for Group 1 Automotive. Lithia’s record quarter

Insider Activity

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. purchased 83,121 shares of Group 1 Automotive stock in a transaction dated Thursday, September 3rd. The shares were bought at an average cost of $282.63 per share, for a total transaction of $23,492,488.23. Following the transaction, the insider owned 1,305,481 shares in the company, valued at $368,968,095.03. This represents a 6.80% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last 90 days, insiders have bought 170,380 shares of company stock valued at $48,934,722. Company insiders own 2.40% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. JPMorgan Chase & Co. cut shares of Group 1 Automotive from an "overweight" rating to a "neutral" rating and decreased their price objective for the company from $380.00 to $320.00 in a research report on Friday, July 31st. DA Davidson set a $425.00 price target on Group 1 Automotive in a research note on Friday, July 10th. UBS Group reduced their price target on Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating for the company in a report on Friday, July 10th. Morgan Stanley restated an "equal weight" rating and set a $300.00 price objective (down from $400.00) on shares of Group 1 Automotive in a research note on Friday, August 7th. Finally, Zacks Research downgraded Group 1 Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Five equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Group 1 Automotive has an average rating of "Hold" and a consensus target price of $373.38.

Group 1 Automotive Profile

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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