Group 1 Automotive (NYSE:GPI) Major Shareholder Acquires $17,156,273.85 in Stock

Key Points

• Conifer Management increased its Group 1 Automotive stake by purchasing 57,159 shares for approximately $17.16 million, bringing its direct holdings to 1.36 million shares. The major shareholder also made additional purchases earlier in the week.
• Group 1 Automotive shares fell 6.3% to $281.78, while the company’s latest quarterly results missed expectations: revenue declined 5.6% year over year to $5.39 billion and EPS came in at $9.61 versus the $10.60 consensus estimate.
• Analyst sentiment is mixed, with an average “Hold” rating and a $392.44 price target. The company declared a quarterly dividend of $0.55 per share, representing a 0.8% annualized yield.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) major shareholder Conifer Management, L.L.C. purchased 57,159 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was bought at an average price of $300.15 per share, for a total transaction of $17,156,273.85. Following the purchase, the insider directly owned 1,362,640 shares in the company, valued at $408,996,396. The trade was a 4.38% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Major shareholders that own 10% or more of a company's shares are required to disclose their transactions with the SEC.

Conifer Management, L.L.C. also recently made the following trade(s):

• On Thursday, September 3rd, Conifer Management, L.L.C. acquired 83,121 shares of Group 1 Automotive stock. The shares were bought at an average price of $282.63 per share, with a total value of $23,492,488.23.
• On Wednesday, September 2nd, Conifer Management, L.L.C. bought 26,561 shares of Group 1 Automotive stock. The stock was bought at an average cost of $276.03 per share, for a total transaction of $7,331,632.83.
• On Tuesday, September 1st, Conifer Management, L.L.C. bought 3,539 shares of Group 1 Automotive stock. The stock was bought at an average cost of $269.66 per share, for a total transaction of $954,326.74.

Group 1 Automotive Stock Down 6.3%

Shares of NYSE:GPI traded down $18.98 on Tuesday, hitting $281.78. 257,823 shares of the company traded hands, compared to its average volume of 189,556. The stock has a 50 day simple moving average of $289.53 and a 200-day simple moving average of $312.99. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. The company has a market cap of $3.36 billion, a PE ratio of 11.74, a PEG ratio of 0.91 and a beta of 0.82. Group 1 Automotive, Inc. has a 52 week low of $249.54 and a 52 week high of $488.39.

Group 1 Automotive (NYSE:GPI - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%.The firm had revenue of $5.39 billion during the quarter, compared to the consensus estimate of $5.66 billion. During the same quarter in the previous year, the firm earned $10.82 EPS. The business's revenue for the quarter was down 5.6% on a year-over-year basis. As a group, research analysts expect that Group 1 Automotive, Inc. will post 38.96 earnings per share for the current year.

Group 1 Automotive Dividend Announcement

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

Hedge Funds Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Group 1 Automotive by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,766 shares of the company's stock valued at $2,966,000 after purchasing an additional 227 shares during the period. Millennium Management LLC lifted its stake in shares of Group 1 Automotive by 20.3% in the 1st quarter. Millennium Management LLC now owns 37,028 shares of the company's stock worth $14,143,000 after purchasing an additional 6,239 shares during the period. Dynamic Technology Lab Private Ltd purchased a new position in shares of Group 1 Automotive in the first quarter worth approximately $229,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Group 1 Automotive by 6.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company's stock valued at $15,993,000 after buying an additional 2,452 shares during the period. Finally, American Century Companies Inc. grew its position in Group 1 Automotive by 46.7% during the second quarter. American Century Companies Inc. now owns 2,753 shares of the company's stock valued at $1,202,000 after buying an additional 877 shares during the period. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have commented on GPI shares. DA Davidson set a $425.00 price target on Group 1 Automotive in a research note on Friday, July 10th. Benchmark reaffirmed a "buy" rating on shares of Group 1 Automotive in a research report on Friday, July 10th. Barclays reduced their price objective on Group 1 Automotive from $435.00 to $365.00 and set an "overweight" rating for the company in a report on Wednesday, August 19th. Morgan Stanley reissued an "equal weight" rating and issued a $300.00 target price (down from $400.00) on shares of Group 1 Automotive in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. cut shares of Group 1 Automotive from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $380.00 to $320.00 in a research note on Friday, July 31st. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $392.44.

Group 1 Automotive Company Profile

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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