Group 1 Automotive, Inc. (NYSE:GPI) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give Group 1 Automotive an average recommendation of “Moderate Buy” (7 buys, 3 holds) with a one‑year average price target of $452.00.
• The company missed the latest quarter—EPS $8.49 vs. $9.36 expected and revenue $5.58B vs. $5.71B expected—while the stock trades around $323.90 with a 52‑week range of $292.44–$488.39 and a P/E of 12.95.
• Group 1 raised its quarterly dividend to $0.55 (annualized $2.20, yield 0.7%) and institutional investors own roughly 99.92% of the shares.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten research firms that are covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $452.00.

A number of research firms have weighed in on GPI. Weiss Ratings downgraded shares of Group 1 Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, December 29th. Barclays decreased their price target on shares of Group 1 Automotive from $470.00 to $455.00 and set an "overweight" rating on the stock in a research note on Tuesday. Bank of America began coverage on shares of Group 1 Automotive in a research note on Wednesday, March 4th. They set a "buy" rating on the stock. JPMorgan Chase & Co. upgraded shares of 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. Finally, Benchmark upgraded shares of Group 1 Automotive from a "hold" rating to a "buy" rating and set a $425.00 target price on the stock in a research note on Monday, March 30th.

Institutional Investors Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently made changes to their positions in the company. Salomon & Ludwin LLC acquired a new stake in shares of Group 1 Automotive in the 3rd quarter valued at $26,000. Signaturefd LLC boosted its stake in shares of Group 1 Automotive by 54.9% in the 4th quarter. Signaturefd LLC now owns 79 shares of the company's stock valued at $31,000 after purchasing an additional 28 shares in the last quarter. First Horizon Corp boosted its stake in shares of Group 1 Automotive by 881.8% in the 4th quarter. First Horizon Corp now owns 108 shares of the company's stock valued at $42,000 after purchasing an additional 97 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Group 1 Automotive in the 4th quarter valued at $43,000. Finally, Assetmark Inc. boosted its stake in shares of Group 1 Automotive by 40.5% in the 4th quarter. Assetmark Inc. now owns 118 shares of the company's stock valued at $46,000 after purchasing an additional 34 shares in the last quarter. Institutional investors and hedge funds own 99.92% of the company's stock.

Group 1 Automotive Stock Down 0.9%

GPI opened at $323.90 on Wednesday. Group 1 Automotive has a fifty-two week low of $292.44 and a fifty-two week 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. The firm's fifty day moving average price is $329.86 and its two-hundred day moving average price is $381.81. The company has a market capitalization of $3.85 billion, a P/E ratio of 12.95, a P/E/G ratio of 0.51 and a beta of 0.88.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The company reported $8.49 earnings per share for the quarter, missing analysts' consensus estimates of $9.36 by ($0.87). Group 1 Automotive had a return on equity of 17.39% and a net margin of 1.44%.The business had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.71 billion. During the same quarter in the prior year, the firm earned $10.02 EPS. The firm's quarterly revenue was up .6% on a year-over-year basis. On average, analysts anticipate that Group 1 Automotive will post 41 EPS for the current year.

Group 1 Automotive Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were paid a $0.55 dividend. The ex-dividend date was Monday, March 2nd. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. This is a boost from Group 1 Automotive's previous quarterly dividend of $0.50. Group 1 Automotive's dividend payout ratio is presently 8.80%.

About Group 1 Automotive

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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