Group 1 Automotive (NYSE:GPI) Hits New 12-Month Low - Time to Sell?

Key Points

• Shares hit a new 52-week low, trading as low as $297.31 and last at $301.68, well below the 50‑day ($355.82) and 200‑day ($399.46) moving averages.
• Analysts are mixed but overall optimistic with a consensus "Moderate Buy" rating, a $458 average price target, and recent coverage including Evercore's "outperform" $500 target alongside some downgrades to hold.
• Group 1 missed the latest quarter (EPS $8.49 vs. $9.36 expected; revenue $5.58B slightly under estimates) but raised its quarterly dividend to $0.55 (annualized $2.20, ~0.7% yield).

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $297.31 and last traded at $301.68, with a volume of 14387 shares. The stock had previously closed at $299.90.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GPI. Evercore assumed coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They issued an "outperform" rating and a $500.00 price target on the stock. Weiss Ratings downgraded shares of Group 1 Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, December 29th. Barclays set a $470.00 price objective on Group 1 Automotive in a research report on Monday, February 2nd. Bank of America began coverage on Group 1 Automotive in a research report on Wednesday, March 4th. They issued a "buy" rating on the stock. Finally, Benchmark restated a "hold" rating on shares of Group 1 Automotive in a report on Friday, January 9th. Six equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $458.00.

Group 1 Automotive Trading Up 0.8%

The company has a quick ratio of 0.27, a current ratio of 1.08 and a debt-to-equity ratio of 1.23. The company's 50 day moving average price is $355.82 and its two-hundred day moving average price is $399.46. The firm has a market cap of $3.60 billion, a PE ratio of 12.11, a P/E/G ratio of 0.46 and a beta of 0.91.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $5.58 billion during the quarter, compared to analysts' expectations of $5.71 billion. During the same period last year, the company earned $10.02 earnings per share. The business's revenue for the quarter was up .6% compared to the same quarter last year. As a group, sell-side analysts forecast that Group 1 Automotive, Inc. will post 41 EPS for the current year.

Group 1 Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be given a $0.55 dividend. This is a boost from Group 1 Automotive's previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $2.20 annualized dividend and a yield of 0.7%. Group 1 Automotive's dividend payout ratio is currently 8.80%.

Institutional Trading of Group 1 Automotive

A number of large investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Group 1 Automotive by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,766 shares of the company's stock valued at $2,966,000 after buying an additional 227 shares in the last quarter. Millennium Management LLC boosted its holdings in shares of Group 1 Automotive by 20.3% in the first quarter. Millennium Management LLC now owns 37,028 shares of the company's stock valued at $14,143,000 after purchasing an additional 6,239 shares during the period. Dynamic Technology Lab Private Ltd purchased a new position in Group 1 Automotive during the 1st quarter worth $229,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Group 1 Automotive by 6.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company's stock valued at $15,993,000 after purchasing an additional 2,452 shares in the last quarter. Finally, Savant Capital LLC lifted its holdings in shares of Group 1 Automotive by 29.6% in the 2nd quarter. Savant Capital LLC now owns 831 shares of the company's stock worth $363,000 after buying an additional 190 shares during the period. 99.92% of the stock is owned by hedge funds and other institutional investors.

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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