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

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.

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

Analyst Upgrades and Downgrades

GPI has been the subject of a number of research analyst reports. Benchmark began coverage on shares of Group 1 Automotive in a report on Tuesday, June 24th. They set a "hold" rating for the company. 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. Zacks Research cut shares of Group 1 Automotive from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. Morgan Stanley upped their price objective on shares of Group 1 Automotive from $470.00 to $485.00 and gave the company an "overweight" rating in a research note on Thursday, August 14th. Finally, Bank of America cut their price objective on shares of Group 1 Automotive from $560.00 to $545.00 and set a "buy" rating for the company in a research note on Wednesday. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Group 1 Automotive currently has a consensus rating of "Hold" and an average target price of $476.57.

Group 1 Automotive Stock Performance

The firm has a market capitalization of $6.06 billion, a P/E ratio of 12.92, a price-to-earnings-growth ratio of 1.17 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 0.24 and a debt-to-equity ratio of 0.97. The business's 50 day simple moving average is $447.57 and its two-hundred day simple moving average is $429.85.

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

Group 1 Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.00 annualized dividend and a yield of 0.4%. Group 1 Automotive's payout ratio is currently 5.51%.

Insider Buying and Selling at Group 1 Automotive

In related news, Director Steven Mizell sold 525 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $417.98, for a total transaction of $219,439.50. Following the sale, the director owned 8 shares of the company's stock, valued at $3,343.84. This represents a 98.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lincoln Pereira sold 7,000 shares of the company's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $469.34, for a total transaction of $3,285,380.00. Following the completion of the transaction, the director owned 82,967 shares in the company, valued at approximately $38,939,731.78. The trade was 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 insiders.

Hedge Funds Weigh In On Group 1 Automotive

Several hedge funds and other institutional investors have recently modified their holdings of GPI. Captrust Financial Advisors raised its position in shares of Group 1 Automotive by 4.2% in the 4th quarter. Captrust Financial Advisors now owns 571 shares of the company's stock valued at $241,000 after purchasing an additional 23 shares during the last quarter. Deutsche Bank AG raised its position in shares of Group 1 Automotive by 91.6% in the 4th quarter. Deutsche Bank AG now owns 33,869 shares of the company's stock valued at $14,275,000 after purchasing an additional 16,191 shares during the last quarter. Janus Henderson Group PLC raised its position in shares of Group 1 Automotive by 9.1% in the 4th quarter. Janus Henderson Group PLC now owns 13,453 shares of the company's stock valued at $5,674,000 after purchasing an additional 1,124 shares during the last quarter. Lazard Asset Management LLC increased its holdings in Group 1 Automotive by 36.0% in the 4th quarter. Lazard Asset Management LLC now owns 4,935 shares of the company's stock worth $2,080,000 after buying an additional 1,305 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Group 1 Automotive by 4.1% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,539 shares of the company's stock worth $3,178,000 after buying an additional 296 shares during the last quarter. 99.92% of the stock is owned by hedge funds and other institutional investors.

About Group 1 Automotive

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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