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

Key Points

• Group 1 Automotive has a consensus analyst rating of “Moderate Buy”, based on 10 covering firms: seven buy ratings and three hold ratings. The average 12-month price target is about $426.89.
• Recent analyst updates were mixed but generally positive, with Citigroup raising its target to $462 and reiterating a buy rating, while Barclays and JPMorgan lowered their price targets but kept overweight ratings.
• The stock rose 3.5% to $330.72, and the company reported quarterly earnings that missed expectations slightly, while also paying a quarterly dividend of $0.55 per share.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) have been given a consensus rating of "Moderate Buy" by the ten ratings firms that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $426.8889.

Several analysts have recently commented on GPI shares. Citigroup increased their price objective on Group 1 Automotive from $420.00 to $462.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Weiss Ratings reiterated a "hold (c)" rating on shares of Group 1 Automotive in a report on Friday, June 12th. Barclays dropped their price objective on Group 1 Automotive from $470.00 to $435.00 and set an "overweight" rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. reduced their target price on shares of Group 1 Automotive from $390.00 to $380.00 and set an "overweight" rating for the company in a research note on Monday. Finally, DA Davidson set a $425.00 price target on shares of Group 1 Automotive in a research report on Friday, July 10th.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. grew its holdings in Group 1 Automotive by 366,770.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 25,431,464 shares of the company's stock valued at $10,002,195,000 after purchasing an additional 25,424,532 shares during the period. Norges Bank purchased a new stake in Group 1 Automotive in the 4th quarter worth about $98,125,000. Franklin Resources Inc. raised its stake in Group 1 Automotive by 968.8% in the 3rd quarter. Franklin Resources Inc. now owns 84,412 shares of the company's stock valued at $36,931,000 after acquiring an additional 76,514 shares during the period. Allspring Global Investments Holdings LLC boosted its position in Group 1 Automotive by 2,053.8% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 51,972 shares of the company's stock worth $20,403,000 after purchasing an additional 49,559 shares during the period. Finally, Man Group plc bought a new stake in shares of Group 1 Automotive in the second quarter valued at approximately $17,959,000. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive Stock Up 3.5%

Group 1 Automotive stock opened at $330.72 on Friday. The firm has a market capitalization of $3.94 billion, a price-to-earnings ratio of 12.63, a price-to-earnings-growth ratio of 0.84 and a beta of 0.83. The firm's fifty day moving average price is $314.45 and its two-hundred day moving average price is $336.63. Group 1 Automotive has a 1-year low of $279.10 and a 1-year high of $488.39. The company has a current ratio of 0.95, a quick ratio of 0.21 and a debt-to-equity ratio of 1.00.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $8.66 earnings per share for the quarter, missing analysts' consensus estimates of $8.82 by ($0.16). Group 1 Automotive had a return on equity of 16.63% and a net margin of 1.46%.The business had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.42 billion. During the same quarter in the prior year, the company earned $10.17 EPS. The company's revenue was down 1.8% on a year-over-year basis. On average, equities research analysts predict that Group 1 Automotive will post 41.78 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, June 1st. Group 1 Automotive's payout ratio is presently 8.40%.

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.