Group 1 Automotive (NYSE:GPI) Major Shareholder Buys 26,561 Shares of Stock

Key Points

• Conifer Management increased its Group 1 Automotive stake by purchasing 26,561 shares at an average $276.03 each, a transaction valued at about $7.33 million. The major shareholder now owns 1.22 million shares and also bought 3,539 shares the previous day.
• Group 1 Automotive shares rose to $284.42, but the company recently missed quarterly earnings and revenue expectations. Quarterly EPS was $9.61 versus the $10.60 consensus, while revenue declined 5.6% year over year to $5.39 billion.
• The company declared a quarterly dividend of $0.55 per share, representing a $2.20 annualized payout and a 0.8% yield. Analysts’ consensus rating is Hold, with an average price target of $392.44.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) major shareholder Conifer Management, L.L.C. acquired 26,561 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average price of $276.03 per share, with a total value of $7,331,632.83. Following the acquisition, the insider owned 1,222,360 shares in the company, valued at $337,408,030.80. The trade was a 2.22% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Major shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

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

• On Tuesday, September 1st, Conifer Management, L.L.C. bought 3,539 shares of Group 1 Automotive stock. The stock was acquired at an average cost of $269.66 per share, for a total transaction of $954,326.74.

Group 1 Automotive Price Performance

Shares of Group 1 Automotive stock traded up $8.01 on Thursday, hitting $284.42. 342,773 shares of the company were exchanged, compared to its average volume of 187,389. 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 50-day moving average price of $289.75 and a 200 day moving average price of $313.76. The stock has a market capitalization of $3.39 billion, a price-to-earnings ratio of 11.85, a price-to-earnings-growth ratio of 0.81 and a beta of 0.82. Group 1 Automotive, Inc. has a 1-year low of $249.54 and a 1-year high of $488.39.

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

Group 1 Automotive Announces Dividend

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 given a dividend of $0.55 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. Group 1 Automotive's payout ratio is presently 9.16%.

Hedge Funds Weigh In On Group 1 Automotive

Several large investors have recently made changes to their positions in the stock. Johnson Financial Group Inc. acquired a new stake in Group 1 Automotive in the 3rd quarter valued at approximately $55,000. Aster Capital Management DIFC Ltd purchased a new stake in Group 1 Automotive in the fourth quarter valued at approximately $57,000. Global Retirement Partners LLC lifted its stake in Group 1 Automotive by 78.5% during the fourth quarter. Global Retirement Partners LLC now owns 191 shares of the company's stock worth $75,000 after purchasing an additional 84 shares in the last quarter. Allworth Financial LP purchased a new position in shares of Group 1 Automotive during the second quarter worth $75,000. Finally, State of Wyoming grew its stake in shares of Group 1 Automotive by 28.2% in the fourth quarter. State of Wyoming now owns 191 shares of the company's stock valued at $75,000 after buying an additional 42 shares in the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on GPI shares. Seaport Research Partners set a $420.00 price objective on shares of Group 1 Automotive in a research report on Monday, August 3rd. Evercore set a $360.00 price target on shares of Group 1 Automotive in a research note on Tuesday, August 4th. Morgan Stanley restated an "equal weight" rating and set a $300.00 price target (down from $400.00) on shares of Group 1 Automotive in a report on Friday, August 7th. Zacks Research lowered shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research report on Monday, August 10th. Finally, UBS Group lowered their price objective on Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. Five equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $392.44.

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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