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

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week low during trading on Monday . The company traded as low as $306.73 and last traded at $308.37, with a volume of 33433 shares changing hands. The stock had previously closed at $318.84.

Analysts Set New Price Targets

GPI has been the topic of a number of recent analyst reports. Evercore assumed coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price target on the stock. Bank of America assumed coverage on shares of Group 1 Automotive in a research note on Wednesday, March 4th. They issued a “buy” rating for the company. Barclays set a $470.00 price objective on shares of Group 1 Automotive in a research report on Monday, February 2nd. Morgan Stanley decreased their target price on Group 1 Automotive from $460.00 to $400.00 and set an “overweight” rating for the company in a research report on Monday, March 2nd. Finally, Benchmark reiterated a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $458.00.

Group 1 Automotive Trading Down 1.4%

The firm has a market capitalization of $3.74 billion, a PE ratio of 12.54, a price-to-earnings-growth ratio of 0.48 and a beta of 0.91. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.08 and a quick ratio of 0.27. The company has a fifty day moving average of $361.12 and a 200-day moving average of $403.00.

Group 1 Automotive (NYSE:GPI) last issued its earnings results on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.39%. The firm had revenue of $5.58 billion during the quarter, compared to analysts’ expectations of $5.71 billion. During the same quarter last year, the firm earned $10.02 EPS. The business’s revenue for the quarter was up .6% compared to the same quarter last year. On average, sell-side analysts anticipate 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 disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be issued a $0.55 dividend. This is an increase from Group 1 Automotive’s previous quarterly dividend of $0.50. This represents a $2.20 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, March 2nd. Group 1 Automotive’s dividend payout ratio is currently 8.80%.

Group 1 Automotive announced that its board has initiated a share buyback plan on Tuesday, November 11th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to purchase up to 10.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Group 1 Automotive

Several institutional investors and hedge funds have recently modified their holdings of the business. Assetmark Inc. lifted its stake in shares of Group 1 Automotive by 25.8% in the second 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 increased its stake in shares of Group 1 Automotive by 6.1% in the second quarter. NewEdge Advisors LLC now owns 471 shares of the company’s stock worth $206,000 after purchasing an additional 27 shares during the period. Signaturefd LLC boosted its stake in Group 1 Automotive by 54.9% during the 4th quarter. Signaturefd LLC now owns 79 shares of the company’s stock valued at $31,000 after purchasing an additional 28 shares during the period. Police & Firemen s Retirement System of New Jersey grew its holdings in Group 1 Automotive by 1.0% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 2,854 shares of the company’s stock valued at $1,246,000 after buying an additional 29 shares during the last quarter. Finally, Procyon Advisors LLC increased its position in Group 1 Automotive by 5.1% in the 3rd quarter. Procyon Advisors LLC now owns 595 shares of the company’s stock worth $260,000 after buying an additional 29 shares during the period. Institutional investors and hedge funds own 99.92% of the company’s stock.

About Group 1 Automotive

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.