Group 1 Automotive (NYSE:GPI) Sets New 52-Week Low - What's Next?

Key Points

• Group 1 Automotive shares hit a new 52-week low, trading as low as $243.36, well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and an average price target of $360.25, although several firms recently cut their targets.
• The company missed quarterly earnings and revenue expectations, with EPS of $9.61 versus $10.60 expected and revenue down 5.6% year over year; meanwhile, insiders bought more than $89 million of stock over the past three months.

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) reached a new 52-week low on Monday. The stock traded as low as $243.36 and last traded at $242.29, with a volume of 74543 shares trading hands. The stock had previously closed at $252.18.

Analyst Ratings Changes

GPI has been the topic of a number of recent research reports. Morgan Stanley reaffirmed an "equal weight" rating and issued a $300.00 target price (down from $400.00) on shares of Group 1 Automotive in a report on Friday, August 7th. Evercore set a $360.00 price target on shares of Group 1 Automotive in a research note on Tuesday, August 4th. UBS Group dropped their price objective on shares of Group 1 Automotive from $338.00 to $330.00 and set a "neutral" rating on the stock in a research note on Friday, July 10th. JPMorgan Chase & Co. cut shares of Group 1 Automotive from an "overweight" rating to a "neutral" rating and reduced their target price for the company from $380.00 to $320.00 in a report on Friday, July 31st. Finally, Benchmark reiterated a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $360.25.

Group 1 Automotive Price Performance

The company has a debt-to-equity ratio of 1.03, a current ratio of 1.02 and a quick ratio of 0.25. The company has a 50 day moving average price of $279.39 and a 200 day moving average price of $306.71. The firm has a market cap of $2.88 billion, a PE ratio of 10.05, a PEG ratio of 0.76 and a beta of 0.82.

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 for the quarter, missing analysts' consensus estimates of $10.60 by ($0.99). The firm had revenue of $5.39 billion during the quarter, compared to analysts' expectations 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 quarterly revenue was down 5.6% on a year-over-year basis. During the same quarter last year, the business earned $10.82 earnings per share. Sell-side analysts expect that Group 1 Automotive, Inc. will post 38.96 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

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

Insider Buying and Selling

In other Group 1 Automotive news, major shareholder Conifer Management, L.L.C. acquired 37,650 shares of the stock in a transaction on Friday, September 18th. The shares were bought at an average price of $249.88 per share, with a total value of $9,407,982.00. Following the acquisition, the insider owned 1,512,290 shares of the company's stock, valued at $377,891,025.20. This trade represents a 2.55% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders have bought a total of 320,030 shares of company stock valued at $89,461,336 in the last three months. 2.40% of the stock is owned by company insiders.

Institutional Trading of Group 1 Automotive

Several hedge funds have recently modified their holdings of the business. QRG Capital Management Inc. acquired a new position in Group 1 Automotive during the second quarter worth $234,000. Anchor Investment Management LLC lifted its holdings in 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 during the period. Tidal Investments LLC lifted its holdings in Group 1 Automotive by 352.3% in the second quarter. Tidal Investments LLC now owns 2,786 shares of the company's stock valued at $811,000 after acquiring an additional 2,170 shares during the period. Engineers Gate Manager LP boosted its position in shares of Group 1 Automotive by 81.4% during the 2nd quarter. Engineers Gate Manager LP now owns 26,173 shares of the company's stock worth $7,621,000 after purchasing an additional 11,748 shares in the last quarter. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Group 1 Automotive during the 2nd quarter worth $42,000. 99.92% of the stock is owned by institutional investors and hedge funds.

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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