Insider Selling: Group 1 Automotive (NYSE:GPI) SVP Sells 2,000 Shares of Company Stock

Key Points

• Insider sale: Group 1 Automotive SVP Gillian Hobson sold 2,000 shares for approximately $516,480, reducing her holdings by 20.96% to 7,543 shares.
• Weak quarterly results: The company reported adjusted EPS of $9.36 and revenue of $5.40 billion, missing analyst estimates; revenue fell 6.7% year over year and EPS declined from $10.45.
• Mixed outlook: GPI shares traded near $259, while analysts held a consensus “Hold” rating with a $340.33 price target. The company maintains a $0.55 quarterly dividend, but leverage and thin margins remain concerns.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) SVP Gillian Hobson sold 2,000 shares of the firm's stock in a transaction that occurred on Thursday, October 29th. The stock was sold at an average price of $258.24, for a total transaction of $516,480.00. Following the completion of the sale, the senior vice president owned 7,543 shares in the company, valued at $1,947,904.32. This represents a 20.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Group 1 Automotive Stock Performance

NYSE GPI traded up $9.71 during trading hours on Thursday, hitting $259.25. 94,058 shares of the company's stock traded hands, compared to its average volume of 201,483. Group 1 Automotive, Inc. has a 52 week low of $224.65 and a 52 week high of $429.00. The firm has a market capitalization of $3.09 billion, a P/E ratio of 10.74, a P/E/G ratio of 1.50 and a beta of 0.92. The company has a current ratio of 1.02, a quick ratio of 0.25 and a debt-to-equity ratio of 1.03. The business's fifty day moving average price is $254.78 and its two-hundred day moving average price is $308.84.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $9.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.50 by ($0.14). Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The business had revenue of $5.40 billion for the quarter, compared to the consensus estimate of $5.58 billion. During the same period in the previous year, the firm earned $10.45 EPS. The company's revenue was down 6.7% on a year-over-year basis. Equities research analysts predict that Group 1 Automotive, Inc. will post 37.68 EPS for the current year.

Group 1 Automotive Announces Dividend

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

Key Headlines Impacting Group 1 Automotive

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Insider confidence provided a supportive signal: Conifer Management, L.L.C. reported purchases of 34,529 shares and 45,000 shares of GPI. Conifer Management buys 34,529 shares Conifer Management acquires 45,000 shares
• Positive Sentiment: Management highlighted continued growth opportunities during the third-quarter earnings call, which may be helping offset concerns about near-term profitability. Group 1 Automotive earnings call highlights
• Neutral Sentiment: Group 1 Automotive continues to have substantial scale, reporting $5.40 billion in quarterly revenue. Its valuation is relatively modest at roughly 10.8 times earnings, although leverage and thin margins remain important considerations for investors.
• Negative Sentiment: Third-quarter adjusted earnings came in at $9.36 per share, below estimates ranging from $9.50 to $9.65 and down from $10.45 a year earlier. GPI Q3 earnings miss estimates
• Negative Sentiment: Revenue of $5.40 billion also missed the $5.58 billion consensus forecast and declined 6.7% year over year. The results indicate weaker demand and squeezed margins, putting pressure on profitability. GPI stock falls as Q3 results squeeze margins

Hedge Funds Weigh In On Group 1 Automotive

Hedge funds have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC bought a new position in shares of Group 1 Automotive during the 2nd quarter worth $42,000. Anchor Investment Management LLC raised its holdings in shares of Group 1 Automotive by 112.0% in the second quarter. Anchor Investment Management LLC now owns 212 shares of the company's stock valued at $62,000 after acquiring an additional 112 shares in the last quarter. Allworth Financial LP bought a new stake in shares of Group 1 Automotive in the second quarter valued at about $75,000. Group One Trading LLC purchased a new stake in Group 1 Automotive in the second quarter worth about $79,000. Finally, Global Retirement Partners LLC purchased a new stake in Group 1 Automotive in the second quarter worth about $81,000. 99.92% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

GPI has been the subject of several analyst reports. Morgan Stanley lowered shares of Group 1 Automotive from an "equal weight" rating to an "underweight" rating and lowered their target price for the stock from $300.00 to $232.00 in a report on Monday, October 5th. JPMorgan Chase & Co. reduced their price target on Group 1 Automotive from $275.00 to $260.00 and set a "neutral" rating on the stock in a report on Tuesday, October 6th. Citigroup decreased their price target on Group 1 Automotive from $387.00 to $357.00 and set a "buy" rating for the company in a research note on Monday, September 28th. KeyCorp set a $425.00 price objective on Group 1 Automotive in a research report on Wednesday, October 7th. Finally, Seaport Research Partners set a $420.00 target price on Group 1 Automotive in a research note on Monday, August 3rd. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $340.33.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.

In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.

Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.

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