Group 1 Automotive (NYSE:GPI) Hits New 52-Week Low - Here's Why

Key Points

• Group 1 Automotive shares fell 3.7% to a new 52-week low of $249.54, well below their 50-day and 200-day moving averages.
• The decline followed weaker-than-expected quarterly results: earnings per share came in at $9.61 versus the $10.60 consensus estimate, while revenue fell 5.6% year over year to $5.39 billion.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $400.22. The company also announced a quarterly dividend of $0.55 per share, implying a 0.9% yield.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $249.54 and last traded at $250.0310, with a volume of 164309 shares. The stock had previously closed at $259.68.

Analyst Upgrades and Downgrades

GPI has been the topic of a number of recent research reports. Benchmark reissued a "buy" rating on shares of Group 1 Automotive in a research report on Friday, July 10th. DA Davidson set a $425.00 price target on shares of Group 1 Automotive in a research note on Friday, July 10th. Weiss Ratings downgraded shares of Group 1 Automotive from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, August 3rd. Morgan Stanley reissued an "equal weight" rating and issued a $300.00 price objective (down from $400.00) on shares of Group 1 Automotive in a research report on Friday, August 7th. Finally, Evercore set a $360.00 target price on shares of Group 1 Automotive in a report on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $400.22.

Group 1 Automotive Trading Down 3.7%

The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02. The firm has a fifty day moving average price of $301.62 and a 200 day moving average price of $320.04. The company has a market cap of $2.98 billion, a price-to-earnings ratio of 10.41, a P/E/G ratio of 0.80 and a beta of 0.82.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $9.61 earnings per share for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%.The firm had revenue of $5.39 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same quarter in the previous year, the firm posted $10.82 earnings per share. Group 1 Automotive's quarterly revenue was down 5.6% on a year-over-year basis. As a group, equities analysts predict that Group 1 Automotive, Inc. will post 38.96 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, September 1st. Group 1 Automotive's dividend payout ratio (DPR) is presently 9.16%.

Institutional Investors Weigh In On Group 1 Automotive

A number of large investors have recently added to or reduced their stakes in GPI. Beacon Pointe Advisors LLC acquired a new stake in Group 1 Automotive during the 2nd quarter valued at $1,468,000. Empowered Funds LLC acquired a new position in shares of Group 1 Automotive in the second quarter valued at $291,000. Corient Private Wealth LP bought a new position in shares of Group 1 Automotive in the second quarter valued at about $203,000. Bank of America Corp DE bought a new position in shares of Group 1 Automotive in the second quarter valued at about $24,206,000. Finally, Gallagher Fiduciary Advisors LLC acquired a new stake in shares of Group 1 Automotive during the 2nd quarter worth about $394,000. Institutional investors own 99.92% of the company's stock.

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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