Group 1 Automotive (NYSE:GPI) Sets New 1-Year Low - What's Next?

Key Points

• Group 1 Automotive shares hit a new 52-week low, falling to $272.28 and trading below both their 50-day and 200-day moving averages.
• Recent quarterly results disappointed, with EPS of $9.61 and revenue of $5.39 billion missing analyst expectations; revenue also declined 5.6% year over year.
• Analyst sentiment remains cautiously positive: six analysts rate the stock Buy and four rate it Hold, producing a “Moderate Buy” consensus and an average price target of $411.33.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report)'s share price reached a new 52-week low on Thursday . The stock traded as low as $272.28 and last traded at $272.7550, with a volume of 50551 shares changing hands. The stock had previously closed at $277.60.

Wall Street Analyst Weigh In

Several analysts have recently commented on GPI shares. UBS Group lowered 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 report on Friday, July 10th. JPMorgan Chase & Co. lowered shares of Group 1 Automotive from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $380.00 to $320.00 in a research report on Friday, July 31st. Benchmark reissued a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Citigroup upped their target price on Group 1 Automotive from $420.00 to $462.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Finally, DA Davidson set a $425.00 price target on Group 1 Automotive in a research note on Friday, July 10th. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $411.33.

Group 1 Automotive Stock Performance

The company has a market cap of $3.25 billion, a PE ratio of 11.36, a P/E/G ratio of 0.84 and a beta of 0.82. The stock's 50 day simple moving average is $310.95 and its two-hundred day simple moving average is $328.52. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03.

Group 1 Automotive (NYSE:GPI - Get Free Report) last announced its quarterly earnings data 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). The company had revenue of $5.39 billion for the quarter, compared to analysts' expectations of $5.66 billion. Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The firm's quarterly revenue was down 5.6% on a year-over-year basis. During the same period in the prior year, the firm earned $10.82 earnings per share. As a group, research analysts anticipate that Group 1 Automotive, Inc. will post 39.9 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a dividend of $0.55 per share. The ex-dividend date was Monday, June 1st. This represents a $2.20 annualized dividend and a yield of 0.8%. Group 1 Automotive's dividend payout ratio is currently 9.16%.

Hedge Funds Weigh In On Group 1 Automotive

A number of large investors have recently modified their holdings of the company. GSA Capital Partners LLP acquired a new position in shares of Group 1 Automotive in the 2nd quarter valued at about $405,000. Oppenheimer Asset Management Inc. purchased a new position in Group 1 Automotive in the second quarter valued at approximately $804,000. Assenagon Asset Management S.A. lifted its position in Group 1 Automotive by 28.4% during the second quarter. Assenagon Asset Management S.A. now owns 30,771 shares of the company's stock valued at $8,960,000 after buying an additional 6,814 shares in the last quarter. Evanson Financial LLC acquired a new position in Group 1 Automotive during the second quarter valued at approximately $335,000. Finally, GAMMA Investing LLC grew its stake in Group 1 Automotive by 186.5% during the second quarter. GAMMA Investing LLC now owns 381 shares of the company's stock worth $111,000 after buying an additional 248 shares during the period. 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.

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