Group 1 Automotive (NYSE:GPI) Sets New 12-Month Low - Time to Sell?

Key Points

• Group 1 Automotive shares fell to a new 52-week low of $249.52, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and a $373.38 average price target, while JPMorgan downgraded it to neutral and Zacks issued a strong-sell rating.
• The company missed quarterly earnings and revenue estimates, with EPS of $9.61 versus $10.60 expected and revenue down 5.6% year over year; however, insiders have bought more than $72 million in shares over the past 90 days.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday . The company traded as low as $249.52 and last traded at $251.2420, with a volume of 48223 shares changing hands. The stock had previously closed at $254.95.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on GPI. Evercore set a $360.00 price target on shares of Group 1 Automotive in a report on Tuesday, August 4th. Seaport Research Partners set a $420.00 price objective on shares of Group 1 Automotive in a research report on Monday, August 3rd. Zacks Research downgraded Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Benchmark reiterated a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Finally, JPMorgan Chase & Co. downgraded Group 1 Automotive from an "overweight" rating to a "neutral" rating and reduced their price target for the company from $380.00 to $320.00 in a report on Friday, July 31st. Five analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $373.38.

Group 1 Automotive Stock Down 1.9%

The stock has a market capitalization of $2.98 billion, a P/E ratio of 10.41, a P/E/G ratio of 0.79 and a beta of 0.82. 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 stock's 50 day simple moving average is $286.77 and its 200 day simple moving average is $309.72.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its 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). 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%. The business's revenue for the quarter was down 5.6% compared to the same quarter last year. During the same quarter last year, the company posted $10.82 EPS. As a group, research analysts predict that Group 1 Automotive, Inc. will post 38.96 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

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

Insiders Place Their Bets

In other news, major shareholder Conifer Management, L.L.C. bought 36,647 shares of Group 1 Automotive stock in a transaction on Thursday, September 10th. The stock was purchased at an average cost of $280.86 per share, with a total value of $10,292,676.42. Following the purchase, the insider directly owned 1,446,640 shares of the company's stock, valued at approximately $406,303,310.40. This trade represents a 2.60% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In the last 90 days, insiders have bought 254,380 shares of company stock valued at $72,603,674. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Group 1 Automotive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GPI. BlackRock Inc. bought a new stake in Group 1 Automotive during the second quarter worth approximately $593,420,000. Conifer Management L.L.C. acquired a new stake in shares of Group 1 Automotive in the second quarter valued at $281,561,390. Norges Bank bought a new position in Group 1 Automotive during the fourth quarter valued at about $98,125,000. Lakewood Capital Management LP bought a new stake in Group 1 Automotive in the second quarter worth about $72,098,000. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth approximately $57,174,000. 99.92% of the stock is owned by institutional investors.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer that operates franchised dealerships in the United States and the United Kingdom. The company sells new and used vehicles from a broad range of manufacturers, including domestic, Asian and European brands.

In addition to vehicle sales, Group 1 Automotive provides automotive maintenance and repair services, sells replacement parts and accessories, and offers financing, insurance and other related products. Its dealerships also support customers through collision-repair operations and online vehicle purchasing tools.

Founded in 1997 and headquartered in Houston, Texas, Group 1 Automotive has expanded through dealership acquisitions and organic growth.

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