Group 1 Automotive (NYSE:GPI) Posts Quarterly Earnings Results, Beats Estimates By $1.21 EPS

Key Points

• Group 1 Automotive reported a quarterly earnings per share of $11.52, exceeding estimates by $1.21, with a revenue increase of 21.4% year-over-year, totaling $5.70 billion.
• The company recently declared a quarterly dividend of $0.50 per share, indicating an annualized dividend of $2.00 with a yield of 0.46%.
• Analysts have mixed ratings for the stock, with Citigroup and Bank of America raising their target prices to between $495.00 and $565.00, while others have downgraded their ratings to "hold."

Group 1 Automotive (NYSE:GPI - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $11.52 EPS for the quarter, beating the consensus estimate of $10.31 by $1.21, Zacks reports. Group 1 Automotive had a return on equity of 18.34% and a net margin of 2.18%. The business had revenue of $5.70 billion for the quarter, compared to the consensus estimate of $5.65 billion. During the same period in the previous year, the business earned $9.82 earnings per share. The business's revenue was up 21.4% on a year-over-year basis.

Group 1 Automotive Trading Up 5.1%

NYSE GPI traded up $21.28 during trading hours on Friday, hitting $437.34. 267,137 shares of the company were exchanged, compared to its average volume of 184,734. The stock has a market cap of $5.66 billion, a PE ratio of 12.06, a price-to-earnings-growth ratio of 1.08 and a beta of 0.90. The stock has a 50-day moving average price of $438.21 and a 200 day moving average price of $431.32. Group 1 Automotive has a 52 week low of $326.91 and a 52 week high of $490.09. The company has a quick ratio of 0.27, a current ratio of 1.00 and a debt-to-equity ratio of 0.89.

Group 1 Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 16th. Shareholders of record on Monday, June 2nd were paid a dividend of $0.50 per share. The ex-dividend date was Monday, June 2nd. This represents a $2.00 annualized dividend and a yield of 0.46%. Group 1 Automotive's payout ratio is currently 5.61%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Citigroup lifted their target price on Group 1 Automotive from $463.00 to $495.00 and gave the stock a "buy" rating in a report on Tuesday, May 13th. Bank of America lifted their target price on Group 1 Automotive from $510.00 to $565.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Wall Street Zen cut Group 1 Automotive from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Benchmark assumed coverage on Group 1 Automotive in a report on Tuesday, June 24th. They issued a "hold" rating on the stock. Finally, Guggenheim cut Group 1 Automotive from a "buy" rating to a "neutral" rating in a report on Wednesday, May 14th. Five analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, Group 1 Automotive currently has an average rating of "Hold" and an average price target of $470.14.

Insider Buying and Selling

In other news, VP Michael David Jones sold 1,613 shares of the company's stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $405.57, for a total transaction of $654,184.41. Following the transaction, the vice president owned 8,260 shares of the company's stock, valued at approximately $3,350,008.20. This represents a 16.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Daniel James Mchenry sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $441.71, for a total value of $1,325,130.00. Following the transaction, the chief financial officer directly owned 16,674 shares in the company, valued at approximately $7,365,072.54. This represents a 15.25% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of GPI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Group 1 Automotive by 3.0% during the first 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 during the last quarter. Millennium Management LLC grew its stake in Group 1 Automotive by 20.3% in the first quarter. Millennium Management LLC now owns 37,028 shares of the company's stock worth $14,143,000 after purchasing an additional 6,239 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Group 1 Automotive in the first quarter worth approximately $229,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Group 1 Automotive by 6.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company's stock worth $15,993,000 after purchasing an additional 2,452 shares in the last quarter. Institutional investors own 99.92% of the company's stock.

Group 1 Automotive Company Profile

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.

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