Group 1 Automotive (NYSE:GPI) Raised to "Buy" at Benchmark

Key Points

• Benchmark upgraded Group 1 Automotive to a "Buy" with a $425 price target, implying roughly a 30.6% upside from the current share price.
• Analyst views are mixed but skew positive—seven Buy and three Hold ratings leave a consensus "Moderate Buy" and a consensus price target of $453.88, with individual targets ranging from $400 to $500.
• Group 1 recently missed EPS (reported $8.49 vs. $9.36 expected) and slightly missed revenue, while the stock trades around $325 with a market cap of $3.86B and a P/E of about 13.0.

Group 1 Automotive (NYSE:GPI - Get Free Report) was upgraded by analysts at Benchmark from a "neutral" rating to a "buy" rating in a research note issued on Monday,Benzinga reports. The firm currently has a $425.00 price objective on the stock. Benchmark's price target suggests a potential upside of 30.58% from the stock's current price.

Several other equities research analysts have also issued reports on GPI. Morgan Stanley reduced their target price on shares of Group 1 Automotive from $460.00 to $400.00 and set an "overweight" rating for the company in a report on Monday, March 2nd. Bank of America started coverage on shares of Group 1 Automotive in a research note on Wednesday, March 4th. They issued a "buy" rating for the company. Evercore initiated coverage on shares of Group 1 Automotive in a research report on Tuesday, January 20th. They set an "outperform" rating and a $500.00 price objective on the stock. Barclays set a $470.00 target price on shares of Group 1 Automotive in a research note on Monday, February 2nd. Finally, Weiss Ratings lowered Group 1 Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $453.88.

Group 1 Automotive Price Performance

Shares of Group 1 Automotive stock opened at $325.47 on Monday. The stock has a market cap of $3.86 billion, a P/E ratio of 13.01, a P/E/G ratio of 0.50 and a beta of 0.91. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.27 and a current ratio of 1.08. The stock's fifty day moving average is $339.51 and its 200 day moving average is $388.46. Group 1 Automotive has a one year low of $292.44 and a one year high of $488.39.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The company reported $8.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.39%. The company had revenue of $5.58 billion for the quarter, compared to the consensus estimate of $5.71 billion. During the same period in the prior year, the firm posted $10.02 EPS. The business's revenue for the quarter was up .6% on a year-over-year basis. Sell-side analysts anticipate that Group 1 Automotive will post 41 earnings per share for the current year.

Hedge Funds Weigh In On Group 1 Automotive

Institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of 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 purchasing an additional 227 shares during the last quarter. Millennium Management LLC lifted its position 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 worth $14,143,000 after buying an additional 6,239 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Group 1 Automotive during the first quarter valued at approximately $229,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings 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 buying an additional 2,452 shares in the last quarter. Finally, MAI Capital Management grew its holdings in Group 1 Automotive by 131.3% during the 2nd quarter. MAI Capital Management now owns 74 shares of the company's stock valued at $32,000 after buying an additional 42 shares in the last quarter. 99.92% of the stock is 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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