Group 1 Automotive (NYSE:GPI) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Group 1 Automotive to “strong sell” from “hold,” contrasting with a broader analyst consensus of “hold,” based on five Buy, four Hold and one Sell rating.
• Group 1 Automotive’s shares opened at $265.62, near their 12-month low of $261.13 and well below the $488.39 high; the average analyst price target remains $400.22.
• The company missed quarterly expectations, reporting $9.61 EPS versus $10.60 expected and $5.39 billion in revenue versus $5.66 billion forecast. Revenue declined 5.6% year over year.

Group 1 Automotive (NYSE:GPI - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Other equities analysts also recently issued research reports about the stock. Benchmark reiterated a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Citigroup raised their price objective 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 target price on shares of Group 1 Automotive in a report on Friday, July 10th. Seaport Research Partners set a $420.00 target price on Group 1 Automotive in a research report on Monday, August 3rd. Finally, Morgan Stanley reiterated an "equal weight" rating and issued a $300.00 price target (down from $400.00) on shares of Group 1 Automotive in a research report on Friday, August 7th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $400.22.

Group 1 Automotive Price Performance

Group 1 Automotive stock opened at $265.62 on Monday. The business's 50 day simple moving average is $307.00 and its 200 day simple moving average is $324.80. Group 1 Automotive has a 12 month low of $261.13 and a 12 month high of $488.39. The company has a market cap of $3.17 billion, a price-to-earnings ratio of 11.06, a PEG ratio of 0.79 and a beta of 0.82. The company has a current ratio of 1.02, a quick ratio of 0.25 and a debt-to-equity ratio of 1.03.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). The firm had revenue of $5.39 billion during the quarter, compared to analysts' expectations of $5.66 billion. Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%.The business's quarterly revenue was down 5.6% compared to the same quarter last year. During the same period in the prior year, the business earned $10.82 earnings per share. Sell-side analysts forecast that Group 1 Automotive will post 39.37 EPS for the current year.

Hedge Funds Weigh In On Group 1 Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GPI. Keebeck Wealth Management bought a new position in Group 1 Automotive in the 2nd quarter worth about $342,000. Allworth Financial LP purchased a new position in shares of Group 1 Automotive during the second quarter worth about $75,000. B. Metzler seel. Sohn & Co. AG bought a new position in shares of Group 1 Automotive in the second quarter worth approximately $1,006,000. Vise Technologies Inc. purchased a new stake in Group 1 Automotive in the second quarter valued at approximately $335,000. Finally, Foster & Motley Inc. bought a new stake in Group 1 Automotive during the second quarter valued at approximately $2,525,000. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

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.

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