Group 1 Automotive (NYSE:GPI) Lowered to Hold Rating by Wall Street Zen

Key Points

• Group 1 Automotive's stock was downgraded from a "buy" to a "hold" rating by analysts at Wall Street Zen.
• The stock currently has a consensus rating of "Hold" with an average target price of $479.43 based on recent research analyst reports.
• In the latest quarter, Group 1 Automotive reported earnings of $11.52 per share, exceeding analysts' expectations, while revenue rose 21.4% year-over-year.

Group 1 Automotive (NYSE:GPI - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other research analysts have also issued research reports about the stock. JPMorgan Chase & Co. lifted their price target on shares of Group 1 Automotive from $415.00 to $425.00 and gave the company a "neutral" rating in a research note on Tuesday, August 5th. Morgan Stanley raised their price objective on shares of Group 1 Automotive from $470.00 to $485.00 and gave the stock an "overweight" rating in a report on Thursday, August 14th. Guggenheim lowered shares of Group 1 Automotive from a "buy" rating to a "neutral" rating in a research note on Wednesday, May 14th. Bank of America lifted their price target 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. Finally, Citigroup boosted their price target on Group 1 Automotive from $463.00 to $495.00 and gave the company a "buy" rating in a report on Tuesday, May 13th. Four research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $479.43.

Group 1 Automotive Trading Up 0.3%

GPI stock traded up $1.43 during midday trading on Friday, hitting $471.71. 55,422 shares of the company's stock were exchanged, compared to its average volume of 164,946. Group 1 Automotive has a one year low of $336.33 and a one year high of $490.09. The stock's fifty day moving average price is $443.91 and its 200-day moving average price is $429.36. The company has a market cap of $6.10 billion, a PE ratio of 13.01, a price-to-earnings-growth ratio of 1.15 and a beta of 0.86. 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 (NYSE:GPI - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The company reported $11.52 EPS 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 company had revenue of $5.70 billion for the quarter, compared to analyst estimates of $5.65 billion. During the same quarter last year, the firm posted $9.82 earnings per share. Group 1 Automotive's revenue was up 21.4% compared to the same quarter last year. Research analysts predict that Group 1 Automotive will post 41 earnings per share for the current fiscal year.

Insider Transactions at Group 1 Automotive

In related news, Director Lincoln Pereira sold 7,000 shares of the company's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $469.34, for a total transaction of $3,285,380.00. Following the sale, the director owned 82,967 shares in the company, valued at approximately $38,939,731.78. This represents a 7.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Steven Mizell sold 525 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $417.98, for a total value of $219,439.50. Following the transaction, the director directly owned 8 shares of the company's stock, valued at $3,343.84. This trade represents a 98.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 10,525 shares of company stock worth $4,829,950 in the last three months. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Group 1 Automotive

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Advent International L.P. grew its stake in shares of Group 1 Automotive by 15.3% in the first quarter. Advent International L.P. now owns 235,195 shares of the company's stock valued at $89,833,000 after buying an additional 31,244 shares in the last quarter. Nuveen LLC acquired a new stake in Group 1 Automotive in the first quarter valued at $74,499,000. Invesco Ltd. grew its position in shares of Group 1 Automotive by 1.8% in the 1st quarter. Invesco Ltd. now owns 180,580 shares of the company's stock valued at $68,973,000 after acquiring an additional 3,277 shares during the period. GW&K Investment Management LLC grew its position in shares of Group 1 Automotive by 0.7% in the 1st quarter. GW&K Investment Management LLC now owns 173,602 shares of the company's stock valued at $66,307,000 after acquiring an additional 1,281 shares during the period. Finally, Norges Bank acquired a new position in shares of Group 1 Automotive during the 2nd quarter worth about $70,561,000. Institutional investors own 99.92% of the company's stock.

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.