Group 1 Automotive (NYSE:GPI) Shares Down 4.3% - Here's What Happened

Key Points

• Group 1 Automotive's stock dropped 4.3% to $467.37 with trading volume declining 85% from the average, indicating potential investor concern.
• Multiple analysts downgraded the stock from a "buy" to a "hold" rating, leading to a consensus rating of "Hold" with an average target price of $476.57.
• The company recently declared a quarterly dividend of $0.50 per share, showcasing its commitment to returning value to shareholders despite recent stock price volatility.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) traded down 4.3% on Friday . The company traded as low as $472.88 and last traded at $467.37. 24,441 shares traded hands during trading, a decline of 85% from the average session volume of 164,430 shares. The stock had previously closed at $488.25.

Analyst Upgrades and Downgrades

A number of research firms have commented on GPI. Zacks Research downgraded shares of Group 1 Automotive from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Wall Street Zen cut shares of Group 1 Automotive from a "buy" rating to a "hold" rating in a research note on Saturday, August 30th. Morgan Stanley boosted their price target on shares of Group 1 Automotive from $470.00 to $485.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. Benchmark initiated coverage on Group 1 Automotive in a report on Tuesday, June 24th. They set a "hold" rating on the stock. Finally, Bank of America lowered their target price on Group 1 Automotive from $560.00 to $545.00 and set a "buy" rating on the stock in a research note on Wednesday, September 10th. Four investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $476.57.

Group 1 Automotive Stock Performance

The firm has a fifty day moving average of $447.55 and a 200-day moving average of $429.68. The firm has a market cap of $6.05 billion, a P/E ratio of 12.96, a PEG ratio of 1.16 and a beta of 0.86. The company has a quick ratio of 0.24, a current ratio of 1.05 and a debt-to-equity ratio of 0.97.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported $11.52 earnings per share for the quarter, beating the consensus estimate of $10.31 by $1.21. The firm had revenue of $5.70 billion for the quarter, compared to analyst estimates of $5.65 billion. Group 1 Automotive had a return on equity of 18.10% and a net margin of 2.18%.The company's quarterly revenue was up 21.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $9.82 earnings per share. Research analysts predict that Group 1 Automotive, Inc. will post 41 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 2nd. Group 1 Automotive's dividend payout ratio (DPR) is currently 5.51%.

Insider Buying and Selling

In related news, Director Steven Mizell sold 525 shares of Group 1 Automotive stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $417.98, for a total value of $219,439.50. Following the sale, the director owned 8 shares of the company's stock, valued at approximately $3,343.84. This trade represents a 98.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Lincoln Pereira sold 7,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $469.34, for a total value of $3,285,380.00. Following the completion of the transaction, the director owned 82,967 shares of the company's stock, valued at approximately $38,939,731.78. This represents a 7.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Group 1 Automotive

A number of large investors have recently added to or reduced their stakes in the business. Advent International L.P. raised its stake in Group 1 Automotive by 15.3% in the 1st quarter. Advent International L.P. now owns 235,195 shares of the company's stock valued at $89,833,000 after acquiring an additional 31,244 shares during the period. Nuveen LLC bought a new stake in Group 1 Automotive in the 1st quarter valued at $74,499,000. Invesco Ltd. raised its stake in Group 1 Automotive by 1.8% in the 1st quarter. Invesco Ltd. now owns 180,580 shares of the company's stock valued at $68,973,000 after acquiring an additional 3,277 shares during the period. GW&K Investment Management LLC raised its stake in Group 1 Automotive by 0.7% in the 1st quarter. GW&K Investment Management LLC now owns 173,602 shares of the company's stock valued at $66,307,000 after acquiring an additional 1,281 shares during the period. Finally, Norges Bank bought a new stake in Group 1 Automotive in the 2nd quarter valued at $70,561,000. 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.