Group 1 Automotive (NYSE:GPI) Sets New 52-Week Low - Time to Sell?

Key Points

• Group 1 Automotive shares hit a new 52-week low, trading near $227.15 and well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and a $341.67 price target, although recent target cuts and a Zacks downgrade to “Strong Sell” signal caution.
• The company missed quarterly earnings and revenue estimates, while insiders purchased shares and Group 1 maintained a quarterly dividend of $0.55 per share, representing a 1.0% yield.

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report)'s stock price reached a new 52-week low on Tuesday. The stock traded as low as $227.50 and last traded at $227.1450, with a volume of 30,243 shares. The stock had previously closed at $229.64.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on GPI shares. Zacks Research downgraded Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. DA Davidson set a $425.00 target price on Group 1 Automotive in a research report on Friday, July 10th. Citigroup reduced their target price on Group 1 Automotive from $387.00 to $357.00 and set a "buy" rating for the company in a report on Monday, September 28th. Seaport Research Partners set a $420.00 target price on Group 1 Automotive in a research note on Monday, August 3rd. Finally, Barclays lowered their target price on Group 1 Automotive from $365.00 to $320.00 and set an "overweight" rating for the company in a research note on Tuesday, October 6th. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Group 1 Automotive presently has a consensus rating of "Hold" and a consensus price target of $341.67.

Group 1 Automotive Price Performance

The firm has a fifty day moving average price of $261.79 and a two-hundred day moving average price of $301.33. The stock has a market capitalization of $2.72 billion, a P/E ratio of 9.52, a P/E/G ratio of 0.71 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.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $5.39 billion during the quarter, compared to analysts' expectations of $5.66 billion. Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%. The business's quarterly revenue was down 5.6% compared to the same quarter last year. During the same period in the previous year, the business posted $10.82 EPS. On average, analysts expect that Group 1 Automotive, Inc. will post 38.36 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. Investors of record on Tuesday, September 1st were given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 1.0%. The ex-dividend date was Tuesday, September 1st. Group 1 Automotive's dividend payout ratio (DPR) is currently 9.16%.

Insider Activity at Group 1 Automotive

In related news, major shareholder Conifer Management, L.L.C. purchased 71,592 shares of the business's stock in a transaction on Wednesday, September 30th. The shares were bought at an average price of $242.03 per share, with a total value of $17,327,411.76. Following the completion of the purchase, the insider directly owned 1,912,290 shares in the company, valued at approximately $462,831,548.70. This trade represents a 3.89% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders purchased 720,030 shares of company stock worth $187,264,264 in the last three months. 2.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Group 1 Automotive

Institutional investors and hedge funds have recently modified their holdings of the business. Bank of America Corp DE acquired a new position in shares of Group 1 Automotive in the second quarter valued at approximately $24,206,000. Conifer Management L.L.C. acquired a new stake in shares of Group 1 Automotive in the second quarter valued at about $281,561,390. BlackRock Inc. purchased a new position in Group 1 Automotive during the 2nd quarter valued at about $593,420,000. Hsbc Holdings PLC purchased a new position in Group 1 Automotive in the 2nd quarter valued at about $5,134,000. Finally, Allspring Global Investments Holdings LLC lifted its holdings in shares of Group 1 Automotive by 51.6% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 78,794 shares of the company's stock worth $26,064,000 after acquiring an additional 26,822 shares during the period. 99.92% of the stock is currently owned by institutional investors.

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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