Group 1 Automotive, Inc. (NYSE:GPI) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Group 1 Automotive, Inc. (NYSE:GPI) has received an average recommendation of "Hold" from nine research firms, with five holding and four buying the stock.
• The company's quarterly earnings surpassed analyst expectations, reporting $11.52 EPS and $5.70 billion in revenue, a 21.4% increase from the previous year.
• Group 1 Automotive has declared a quarterly dividend of $0.50 per share, reflecting a 0.4% yield, with an ex-dividend date set for September 2nd.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) have been assigned a consensus recommendation of "Hold" from the nine research firms that are covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $479.4286.

GPI has been the subject of several analyst reports. Zacks Research lowered Group 1 Automotive from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. JPMorgan Chase & Co. upped their target price on Group 1 Automotive from $415.00 to $425.00 and gave the company a "neutral" rating in a research note on Tuesday, August 5th. Benchmark initiated coverage on Group 1 Automotive in a research note on Tuesday, June 24th. They issued a "hold" rating for the company. Morgan Stanley upped their target price on Group 1 Automotive from $470.00 to $485.00 and gave the company an "overweight" rating in a research note on Thursday, August 14th. Finally, Bank of America upped their target price on Group 1 Automotive from $510.00 to $565.00 and gave the company a "buy" rating in a research note on Monday, June 16th.

Group 1 Automotive Stock Performance

Shares of NYSE:GPI traded up $0.27 during trading on Tuesday, reaching $477.31. The company had a trading volume of 177,857 shares, compared to its average volume of 145,895. The stock's fifty day moving average price is $442.28 and its 200 day moving average price is $429.67. Group 1 Automotive has a fifty-two week low of $336.33 and a fifty-two week high of $490.09. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of 13.16, a price-to-earnings-growth ratio of 1.18 and a beta of 0.83. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.05 and a quick ratio of 0.24.

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

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 0.4%. The ex-dividend date is Tuesday, September 2nd. Group 1 Automotive's dividend payout ratio is presently 5.51%.

Insider Activity at Group 1 Automotive

In related news, Director Steven Mizell sold 525 shares of the company's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $417.98, for a total value of $219,439.50. Following the completion of the transaction, the director directly owned 8 shares in the company, valued at approximately $3,343.84. This represents a 98.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Lincoln Pereira sold 7,000 shares of the company's stock in a transaction 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 transaction, the director owned 82,967 shares of the company's stock, valued at $38,939,731.78. The trade was a 7.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 10,525 shares of company stock worth $4,829,950. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MAI Capital Management increased its stake in Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company's stock worth $32,000 after acquiring an additional 42 shares during the last quarter. Elequin Capital LP acquired a new stake in Group 1 Automotive during the first quarter worth about $29,000. Signaturefd LLC grew its stake in shares of Group 1 Automotive by 90.5% in the second quarter. Signaturefd LLC now owns 80 shares of the company's stock valued at $35,000 after buying an additional 38 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in shares of Group 1 Automotive in the second quarter valued at about $43,000. Finally, Bessemer Group Inc. boosted its holdings in Group 1 Automotive by 60.3% in the first quarter. Bessemer Group Inc. now owns 109 shares of the company's stock valued at $41,000 after purchasing an additional 41 shares during the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Group 1 Automotive Company Profile

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.