Group 1 Automotive (NYSE:GPI) Downgraded to "Neutral" Rating by JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded Group 1 Automotive to “neutral” from “overweight” and set a $320 price target, implying about 15.4% upside. Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with an average target of $420.22.
• Group 1 Automotive shares fell 6.6% to $277.20, near their 52-week low, after quarterly EPS of $9.61 and revenue of $5.39 billion missed estimates. Revenue declined 5.6% year over year, while net income and EPS also fell amid softer consumer spending.
• The company agreed to acquire 10 Hennessy dealerships and related real estate in Atlanta, an expansion expected to add approximately $1.7 billion in annualized revenue and immediately boost EPS. Group 1 also completed a $50 million annualized U.S. cost-reduction initiative, though investors remain focused on execution and financial risk.

Group 1 Automotive (NYSE:GPI - Get Free Report) was downgraded by equities researchers at JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a report issued on Friday, MarketBeat Ratings reports. They currently have a $320.00 price objective on the stock. JPMorgan Chase & Co.'s price target points to a potential upside of 15.44% from the stock's current price.

GPI has been the topic of several other reports. Evercore set a $440.00 target price on shares of Group 1 Automotive in a report on Tuesday, July 7th. Citigroup raised their target price on shares of Group 1 Automotive from $420.00 to $462.00 and gave the stock a "buy" rating in a report on Monday, May 11th. DA Davidson set a $425.00 price objective on shares of Group 1 Automotive in a report on Friday, July 10th. Benchmark reiterated a "buy" rating on shares of Group 1 Automotive in a report on Friday, July 10th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Group 1 Automotive in a report on Friday, June 12th. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Group 1 Automotive currently has a consensus rating of "Moderate Buy" and an average price target of $420.22.

Group 1 Automotive Trading Down 6.6%

NYSE:GPI traded down $19.50 during mid-day trading on Friday, hitting $277.20. The company had a trading volume of 126,763 shares, compared to its average volume of 184,316. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.21 and a current ratio of 0.95. Group 1 Automotive has a fifty-two week low of $274.27 and a fifty-two week high of $488.39. The firm has a market cap of $3.30 billion, a P/E ratio of 10.60, a P/E/G ratio of 0.95 and a beta of 0.83. The business's fifty day moving average is $314.34 and its two-hundred day moving average is $331.68.

Group 1 Automotive (NYSE:GPI - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $9.61 EPS for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). Group 1 Automotive had a net margin of 1.46% and a return on equity of 16.63%. The company had revenue of $5.39 billion during the quarter, compared to the consensus estimate of $5.66 billion. During the same period last year, the company earned $10.82 earnings per share. The business's revenue was down 5.6% compared to the same quarter last year. As a group, research analysts expect that Group 1 Automotive will post 41.57 earnings per share for the current year.

Institutional Investors Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently made changes to their positions in the stock. Signaturefd LLC grew its stake in shares of Group 1 Automotive by 54.9% in the fourth quarter. Signaturefd LLC now owns 79 shares of the company's stock valued at $31,000 after buying an additional 28 shares in the last quarter. First Horizon Corp lifted its stake in Group 1 Automotive by 881.8% in the fourth quarter. First Horizon Corp now owns 108 shares of the company's stock valued at $42,000 after acquiring an additional 97 shares during the last quarter. Torren Management LLC acquired a new stake in Group 1 Automotive in the fourth quarter valued at $43,000. Assetmark Inc. raised its stake in Group 1 Automotive by 40.5% in the fourth quarter. Assetmark Inc. now owns 118 shares of the company's stock valued at $46,000 after buying an additional 34 shares during the period. Finally, Johnson Financial Group Inc. acquired a new position in shares of Group 1 Automotive during the 3rd quarter worth approximately $55,000. Institutional investors own 99.92% of the company's stock.

Group 1 Automotive News Roundup

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Group 1 agreed to acquire 10 Hennessy Automobile Companies dealerships and related real estate in the Atlanta market. The transaction is expected to add approximately $1.7 billion in annualized revenue and be immediately accretive to earnings per share after closing, strengthening the company’s regional “cluster” strategy. Group 1 Agrees to Acquire Hennessy Automobile Dealerships
• Positive Sentiment: The company said it completed a $50 million annualized U.S. expense-reduction initiative. This could help offset weaker demand and support margins, although the quarter’s results suggest cost savings have not fully countered operating pressure. Group 1 Automotive Q2 Revenue Falls to $5.4 Billion
• Neutral Sentiment: Management’s earnings presentation and call focused on the Hennessy transaction, the company’s dealership-cluster strategy, cost reductions and current market conditions. Investors will likely look for evidence that the acquisition can deliver its projected earnings contribution without increasing financial risk. Group 1 Automotive 2026 Q2 Results Presentation
• Negative Sentiment: Adjusted earnings were $9.61 per share, below the $10.60–$10.79 analyst consensus and down from $11.52 a year earlier. Reported revenue of $5.39 billion also missed the $5.66 billion estimate and declined 5.6% year over year. Group 1 Automotive Q2 Earnings and Revenues Miss Estimates
• Negative Sentiment: Net income from continuing operations fell to $103.0 million from $139.8 million, while diluted continuing-operations EPS declined to $8.62 from $10.77. The weaker performance was attributed to softer consumer spending, raising concerns about demand for vehicle sales and dealership services. Group 1 Automotive Misses Second-Quarter Estimates

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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