Group 1 Automotive (NYSE:GPI) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Group 1 Automotive was upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, with several analysts also showing positive sentiments towards the stock.
• The company reported earnings of $11.52 per share, exceeding estimates, with a revenue of $5.70 billion for the quarter, a 21.4% increase year-over-year.
• Group 1 Automotive's current market capitalization is $5.72 billion, and the stock has a consensus rating of "Moderate Buy" with an average price target of $479.43.

Group 1 Automotive (NYSE:GPI - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

A number of other equities research analysts have also recently commented on the stock. Bank of America increased their price objective on shares of Group 1 Automotive from $510.00 to $565.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. raised their price target on shares of Group 1 Automotive from $415.00 to $425.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 5th. Citigroup raised their price target on shares of Group 1 Automotive from $463.00 to $495.00 and gave the stock a "buy" rating in a research note on Tuesday, May 13th. Guggenheim cut shares of Group 1 Automotive from a "buy" rating to a "neutral" rating in a research note on Wednesday, May 14th. Finally, Morgan Stanley raised 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 note on Thursday, August 14th. Four research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Group 1 Automotive currently has a consensus rating of "Hold" and a consensus target price of $479.43.

Group 1 Automotive Price Performance

NYSE GPI traded down $4.36 during trading hours on Friday, reaching $448.34. The company's stock had a trading volume of 20,294 shares, compared to its average volume of 165,727. The stock has a market cap of $5.80 billion, a PE ratio of 12.32, a PEG ratio of 1.10 and a beta of 0.83. Group 1 Automotive has a fifty-two week low of $336.33 and a fifty-two week high of $490.09. The company's 50-day moving average is $438.21 and its two-hundred day moving average is $429.41. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.24 and a current ratio of 1.05.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The company reported $11.52 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 analysts' expectations of $5.65 billion. Group 1 Automotive had a net margin of 2.18% and a return on equity of 18.10%. The firm's revenue was up 21.4% on a year-over-year basis. During the same period in the prior year, the company earned $9.82 EPS. Analysts forecast that Group 1 Automotive will post 41 EPS for the current year.

Insider Activity at Group 1 Automotive

In other news, Director Steven Mizell sold 525 shares of the business'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 transaction, the director directly owned 8 shares of the company's stock, valued at approximately $3,343.84. The trade was a 98.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Daniel James Mchenry sold 3,000 shares of the business's stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $441.71, for a total transaction of $1,325,130.00. Following the transaction, the chief financial officer directly owned 16,674 shares in the company, valued at approximately $7,365,072.54. The trade was a 15.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Bessemer Group Inc. lifted its position in shares of Group 1 Automotive by 119.4% during the fourth quarter. Bessemer Group Inc. now owns 68 shares of the company's stock worth $29,000 after purchasing an additional 37 shares in the last quarter. Elequin Capital LP bought a new stake in shares of Group 1 Automotive in the first quarter worth $29,000. MAI Capital Management increased its stake in shares of Group 1 Automotive by 131.3% in the second quarter. MAI Capital Management now owns 74 shares of the company's stock worth $32,000 after buying an additional 42 shares during the last quarter. Signaturefd LLC increased its stake in shares of Group 1 Automotive by 90.5% in the second quarter. Signaturefd LLC now owns 80 shares of the company's stock worth $35,000 after buying an additional 38 shares during the last quarter. Finally, Elevation Point Wealth Partners LLC bought a new stake in shares of Group 1 Automotive in the second quarter worth $43,000. 99.92% of the stock is owned by institutional investors and hedge funds.

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.