Group 1 Automotive, Inc. $GPI Shares Sold by GW&K Investment Management LLC

Key Points

• GW&K Investment Management trimmed its position in Group 1 Automotive by 4.1% to 160,693 shares (about $70.3M), while overall institutional ownership remains extremely high at 99.92% and other large institutions (e.g., Massachusetts Financial Services, Norges Bank) have recently added significant stakes.
• Group 1 Automotive missed quarterly estimates with EPS $8.49 vs. $9.36 expected and revenue of $5.58B vs. $5.71B, trading around $326 versus 50- and 200-day moving averages of $367.94 and $407.06, respectively; the company has a market cap of $3.89B, a net margin of 1.44% and ROE of 17.39%.
• The board increased the quarterly dividend to $0.55 (annualized $2.20) and authorized a $500M buyback (up to ~10.4% of shares), while analysts hold a consensus "Moderate Buy" with a $458 price target amid mixed ratings.

GW&K Investment Management LLC lowered its stake in shares of Group 1 Automotive, Inc. (NYSE:GPI - Free Report) by 4.1% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 160,693 shares of the company's stock after selling 6,845 shares during the quarter. GW&K Investment Management LLC owned 1.27% of Group 1 Automotive worth $70,307,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Massachusetts Financial Services Co. MA purchased a new stake in Group 1 Automotive during the 3rd quarter worth about $75,315,000. Norges Bank acquired a new position in shares of Group 1 Automotive during the second quarter worth about $70,561,000. Victory Capital Management Inc. grew its position in shares of Group 1 Automotive by 34.8% during the third quarter. Victory Capital Management Inc. now owns 226,915 shares of the company's stock worth $99,278,000 after buying an additional 58,641 shares in the last quarter. Man Group plc purchased a new stake in shares of Group 1 Automotive during the second quarter worth approximately $17,959,000. Finally, Boston Partners raised its holdings in Group 1 Automotive by 51.3% in the second quarter. Boston Partners now owns 114,096 shares of the company's stock valued at $49,503,000 after acquiring an additional 38,705 shares in the last quarter. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

Group 1 Automotive Stock Performance

NYSE GPI opened at $326.06 on Thursday. The company has a fifty day moving average of $367.94 and a two-hundred day moving average of $407.06. The company has a market capitalization of $3.89 billion, a PE ratio of 13.04 and a beta of 0.91. Group 1 Automotive, Inc. has a 1 year low of $306.96 and a 1 year high of $488.39. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.08 and a quick ratio of 0.27.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Thursday, January 29th. The company reported $8.49 earnings per share for the quarter, missing the consensus estimate of $9.36 by ($0.87). The firm had revenue of $5.58 billion during the quarter, compared to analysts' expectations of $5.71 billion. Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.39%. The firm's revenue for the quarter was up .6% on a year-over-year basis. During the same period in the previous year, the firm posted $10.02 earnings per share. As a group, analysts expect that Group 1 Automotive, Inc. will post 41 earnings per share for the current year.

Group 1 Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be issued a $0.55 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This is an increase from Group 1 Automotive's previous quarterly dividend of $0.50. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. Group 1 Automotive's dividend payout ratio is currently 8.80%.

Group 1 Automotive declared that its Board of Directors has initiated a stock buyback program on Tuesday, November 11th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 10.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of brokerages have commented on GPI. Barclays set a $470.00 price objective on shares of Group 1 Automotive in a research report on Monday, February 2nd. Benchmark reissued a "hold" rating on shares of Group 1 Automotive in a report on Friday, January 9th. JPMorgan Chase & Co. upgraded Group 1 Automotive from a "neutral" rating to an "overweight" rating and set a $370.00 price target on the stock in a research note on Friday, February 20th. Evercore initiated coverage on Group 1 Automotive in a report on Tuesday, January 20th. They set an "outperform" rating and a $500.00 price target for the company. Finally, Weiss Ratings downgraded Group 1 Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, December 29th. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $458.00.

Group 1 Automotive Company 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.

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.