Group 1 Automotive (NYSE:GPI) Reaches New 1-Year Low - Here's Why

Key Points

• Group 1 Automotive shares fell to a new 52-week low of $260.16, trading about 1.5% lower and well below their 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations: EPS was $9.61 versus $10.60 expected, while revenue declined 5.6% year over year to $5.39 billion.
• Analyst sentiment is mixed, with an overall “Hold” rating and a consensus price target of $400.22. Group 1 also declared a quarterly dividend of $0.55 per share, yielding about 0.8%.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) shares reached a new 52-week low during trading on Thursday . The company traded as low as $260.16 and last traded at $260.4520, with a volume of 19638 shares changing hands. The stock had previously closed at $266.11.

Analyst Upgrades and Downgrades

GPI has been the subject of several recent analyst reports. Benchmark restated a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Zacks Research lowered shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research note on Monday. Seaport Research Partners set a $420.00 price objective on shares of Group 1 Automotive in a report on Monday, August 3rd. Evercore set a $360.00 target price on shares of Group 1 Automotive in a research report on Tuesday, August 4th. Finally, UBS Group cut their price target on shares of Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating on the stock in a research note on Friday, July 10th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $400.22.

Group 1 Automotive Stock Down 1.5%

The firm has a market cap of $3.12 billion, a price-to-earnings ratio of 10.94, a P/E/G ratio of 0.79 and a beta of 0.82. The firm's 50 day moving average price is $306.18 and its two-hundred day moving average price is $323.84. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.02 and a quick ratio of 0.25.

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

Group 1 Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, September 1st. Group 1 Automotive's dividend payout ratio is 9.16%.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently bought and sold shares of GPI. Kendall Capital Management purchased a new position in Group 1 Automotive during the 2nd quarter worth $510,000. Northwestern Mutual Wealth Management Co. purchased a new position in Group 1 Automotive during the second quarter worth about $1,436,000. Quantbot Technologies LP acquired a new stake in Group 1 Automotive in the second quarter valued at about $2,228,000. Keebeck Wealth Management purchased a new stake in Group 1 Automotive in the 2nd quarter valued at approximately $342,000. Finally, Allworth Financial LP acquired a new position in Group 1 Automotive during the 2nd quarter worth approximately $75,000. 99.92% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source