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

Group 1 Automotive, Inc. (NYSE:GPI) shares hit a new 52-week low during trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $410.00 to $370.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Group 1 Automotive traded as low as $331.59 and last traded at $334.74, with a volume of 152747 shares changing hands. The stock had previously closed at $338.40.

Several other research analysts have also recently commented on the stock. Benchmark reaffirmed a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Morgan Stanley set a $460.00 price target on Group 1 Automotive in a research report on Monday, December 8th. Barclays set a $470.00 price objective on Group 1 Automotive in a research note on Monday, February 2nd. Evercore began coverage on Group 1 Automotive in a report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective for the company. Finally, Weiss Ratings lowered Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Group 1 Automotive currently has a consensus rating of “Moderate Buy” and a consensus price target of $466.57.

Hedge Funds Weigh In On Group 1 Automotive

A number of institutional investors have recently modified their holdings of the business. Assetmark Inc. lifted its position in shares of Group 1 Automotive by 25.8% during the 2nd quarter. Assetmark Inc. now owns 122 shares of the company’s stock worth $53,000 after buying an additional 25 shares during the last quarter. NewEdge Advisors LLC raised its stake in Group 1 Automotive by 6.1% during the second quarter. NewEdge Advisors LLC now owns 471 shares of the company’s stock worth $206,000 after acquiring an additional 27 shares in the last quarter. Signaturefd LLC raised its stake in Group 1 Automotive by 54.9% during the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock worth $31,000 after acquiring an additional 28 shares in the last quarter. Police & Firemen s Retirement System of New Jersey lifted its holdings in shares of Group 1 Automotive by 1.0% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 2,854 shares of the company’s stock worth $1,246,000 after acquiring an additional 29 shares during the last quarter. Finally, Procyon Advisors LLC boosted its stake in shares of Group 1 Automotive by 5.1% in the 3rd quarter. Procyon Advisors LLC now owns 595 shares of the company’s stock valued at $260,000 after purchasing an additional 29 shares in the last quarter. Institutional investors and hedge funds own 99.92% of the company’s stock.

Group 1 Automotive Trading Down 0.4%

The company has a market capitalization of $4.24 billion, a price-to-earnings ratio of 13.43 and a beta of 0.90. The company has a current ratio of 1.06, a quick ratio of 0.25 and a debt-to-equity ratio of 1.06. The business’s 50 day moving average price is $389.88 and its two-hundred day moving average price is $416.41.

Group 1 Automotive (NYSE:GPI) last issued its quarterly earnings data on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing the consensus estimate of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.00%. The company had revenue of $5.58 billion during the quarter, compared to the consensus estimate of $5.71 billion. During the same period in the previous year, the company earned $10.02 EPS. Group 1 Automotive’s revenue for the quarter was up .6% on a year-over-year basis. On average, equities analysts predict that Group 1 Automotive, Inc. will post 41 earnings per share for the current fiscal year.

Group 1 Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, March 2nd. This is a positive change from Group 1 Automotive’s previous quarterly dividend of $0.50. Group 1 Automotive’s dividend payout ratio is currently 8.00%.

Group 1 Automotive announced that its board has authorized a stock buyback plan on Tuesday, November 11th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 10.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc (NYSE: GPI) is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.