Group 1 Automotive (NYSE:GPI) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• Group 1 Automotive shares fell to a new 52-week low of $234 after JPMorgan cut its price target from $275 to $260 while maintaining a neutral rating.
• Analyst sentiment has weakened, with Zacks downgrading the stock to “strong sell” and other firms reducing price targets; the overall consensus remains “Hold” with a $331.25 target.
• The company’s latest quarter missed expectations, reporting $9.61 in EPS versus $10.60 expected and revenue of $5.39 billion versus $5.66 billion, while insiders have purchased more than $187 million of stock over the past 90 days.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) shares hit a new 52-week low on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $275.00 to $260.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Group 1 Automotive traded as low as $234.00 and last traded at $234.06, with a volume of 24970 shares changing hands. The stock had previously closed at $236.96.

GPI has been the subject of several other reports. Zacks Research cut shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research report on Monday, August 10th. Evercore set a $360.00 price target on shares of Group 1 Automotive in a research note on Tuesday, August 4th. Barclays cut their price objective on Group 1 Automotive from $365.00 to $320.00 and set an "overweight" rating on the stock in a research report on Tuesday. DA Davidson set a $425.00 target price on Group 1 Automotive in a report on Friday, July 10th. Finally, Weiss Ratings lowered Group 1 Automotive from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $331.25.

Insider Activity

In related news, major shareholder Conifer Management, L.L.C. purchased 133,472 shares of the company's stock in a transaction dated Monday, September 28th. The shares were purchased at an average cost of $243.58 per share, with a total value of $32,511,109.76. Following the transaction, the insider directly owned 1,772,050 shares in the company, valued at $431,635,939. This trade represents a 8.15% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased 720,030 shares of company stock worth $187,264,264 in the last ninety days. 2.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Group 1 Automotive

A number of institutional investors have recently modified their holdings of GPI. QRG Capital Management Inc. bought a new position in shares of Group 1 Automotive during the second quarter valued at $234,000. Anchor Investment Management LLC grew its position in Group 1 Automotive by 112.0% during the 2nd quarter. Anchor Investment Management LLC now owns 212 shares of the company's stock valued at $62,000 after purchasing an additional 112 shares during the last quarter. Tidal Investments LLC increased its stake in Group 1 Automotive by 352.3% during the 2nd quarter. Tidal Investments LLC now owns 2,786 shares of the company's stock valued at $811,000 after purchasing an additional 2,170 shares in the last quarter. Engineers Gate Manager LP raised its holdings in Group 1 Automotive by 81.4% in the second quarter. Engineers Gate Manager LP now owns 26,173 shares of the company's stock worth $7,621,000 after buying an additional 11,748 shares during the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new position in Group 1 Automotive in the second quarter worth about $42,000. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive Trading Down 0.9%

The stock has a market cap of $2.80 billion, a PE ratio of 9.80, a PEG ratio of 0.73 and a beta of 0.92. 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 stock's fifty day moving average price is $267.82 and its 200 day moving average price is $303.76.

Group 1 Automotive (NYSE:GPI - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.60 by ($0.99). The business had revenue of $5.39 billion during the quarter, compared to the consensus estimate of $5.66 billion. Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The business's revenue was down 5.6% compared to the same quarter last year. During the same period last year, the company posted $10.82 earnings per share. On average, sell-side analysts forecast that Group 1 Automotive, Inc. will post 38.7 EPS for the current year.

Group 1 Automotive Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, September 1st. Group 1 Automotive's dividend payout ratio (DPR) is presently 9.16%.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer that operates franchised automobile dealerships. The company sells new and used vehicles from a range of manufacturers and provides related automotive services, including vehicle maintenance and repairs, parts and accessories, financing, and insurance products.

Founded in 1997 and headquartered in Houston, Texas, Group 1 Automotive serves customers through dealership operations in the United States and the United Kingdom, as well as other international markets.

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