Hodges Capital Management Inc. Cuts Stock Position in Group 1 Automotive, Inc. $GPI

Key Points

• Hodges Capital Management Inc. has reduced its stake in Group 1 Automotive by 44.7%, selling 16,454 shares, and now holds 20,367 shares valued at approximately $7.78 million.
• Analysts have varied opinions on Group 1 Automotive, with ratings ranging from "buy" to "hold," and a consensus target price set at $476.57.
• Group 1 Automotive recently announced a quarterly dividend of $0.50, translating to an annualized yield of 0.4%, indicating a pay-out ratio of 5.51%.

Hodges Capital Management Inc. cut its holdings in shares of Group 1 Automotive, Inc. (NYSE:GPI - Free Report) by 44.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 20,367 shares of the company's stock after selling 16,454 shares during the quarter. Hodges Capital Management Inc. owned approximately 0.16% of Group 1 Automotive worth $7,779,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Strs Ohio bought a new stake in Group 1 Automotive in the 1st quarter valued at about $4,851,000. Intech Investment Management LLC boosted its position in shares of Group 1 Automotive by 35.2% during the 1st quarter. Intech Investment Management LLC now owns 8,432 shares of the company's stock valued at $3,221,000 after acquiring an additional 2,195 shares during the last quarter. Flaharty Asset Management LLC bought a new stake in shares of Group 1 Automotive during the 1st quarter valued at about $115,000. Bayforest Capital Ltd bought a new stake in shares of Group 1 Automotive during the 1st quarter valued at about $370,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Group 1 Automotive by 6.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company's stock worth $15,993,000 after buying an additional 2,452 shares during the last quarter. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive Stock Performance

Shares of NYSE GPI traded down $7.98 during mid-day trading on Monday, hitting $458.34. The stock had a trading volume of 131,145 shares, compared to its average volume of 165,703. The company has a 50 day moving average of $447.56 and a two-hundred day moving average of $429.50. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.24 and a current ratio of 1.05. Group 1 Automotive, Inc. has a twelve month low of $344.38 and a twelve month high of $490.09. The firm has a market cap of $5.93 billion, a PE ratio of 12.64, a PEG ratio of 1.18 and a beta of 0.86.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Thursday, July 24th. The company reported $11.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.31 by $1.21. The business had revenue of $5.70 billion for the quarter, compared to analyst estimates of $5.65 billion. Group 1 Automotive had a net margin of 2.18% and a return on equity of 18.10%. The company's revenue for the quarter was up 21.4% on a year-over-year basis. During the same period in the prior year, the company posted $9.82 EPS. Research analysts predict that Group 1 Automotive, Inc. will post 41 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.50 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.4%. Group 1 Automotive's dividend payout ratio (DPR) is currently 5.51%.

Insider Activity at Group 1 Automotive

In related news, Director Lincoln Pereira sold 7,000 shares of Group 1 Automotive stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $469.34, for a total value of $3,285,380.00. Following the completion of the sale, the director owned 82,967 shares in the company, valued at approximately $38,939,731.78. This trade represents a 7.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Steven Mizell sold 525 shares of the business's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $417.98, for a total transaction of $219,439.50. Following the completion of the transaction, the director owned 8 shares of the company's stock, valued at approximately $3,343.84. This trade represents a 98.50% decrease in their position. The disclosure for this sale can be found here. 2.10% of the stock is currently owned by company insiders.

Analyst Ratings Changes

GPI has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their target price on Group 1 Automotive from $415.00 to $425.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 5th. Zacks Research cut Group 1 Automotive from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. Benchmark started coverage on Group 1 Automotive in a report on Tuesday, June 24th. They issued a "hold" rating on the stock. Bank of America decreased their price objective on Group 1 Automotive from $560.00 to $545.00 and set a "buy" rating on the stock in a research note on Wednesday, September 10th. Finally, Morgan Stanley raised their price target on Group 1 Automotive from $470.00 to $485.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Four research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Group 1 Automotive presently has an average rating of "Hold" and an average target price of $476.57.

About Group 1 Automotive

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.