Group 1 Automotive (NYSE:GPI) Lowered to “Neutral” Rating by JPMorgan Chase & Co.

JPMorgan Chase & Co. lowered shares of Group 1 Automotive (NYSE:GPI) from an overweight rating to a neutral rating in a research report sent to investors on Friday morning, MarketBeat reports. They currently have $320.00 price objective on the stock, down from their prior price objective of $380.00.

GPI has been the subject of a number of other research reports. Benchmark reaffirmed a “buy” rating on shares of Group 1 Automotive in a report on Friday, July 10th. Citigroup boosted their target price on shares of Group 1 Automotive from $420.00 to $462.00 and gave the stock a “buy” rating in a research report on Monday, May 11th. Weiss Ratings restated a “hold (c)” rating on shares of Group 1 Automotive in a research note on Friday, June 12th. Barclays reduced their target price on Group 1 Automotive from $470.00 to $435.00 and set an “overweight” rating on the stock in a report on Wednesday, July 15th. Finally, Evercore set a $440.00 price target on shares of Group 1 Automotive in a report on Tuesday, July 7th. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Group 1 Automotive currently has a consensus rating of “Moderate Buy” and a consensus target price of $420.22.

Group 1 Automotive Price Performance

GPI opened at $287.18 on Friday. The company has a fifty day simple moving average of $313.57 and a 200 day simple moving average of $331.37. The firm has a market cap of $3.42 billion, a price-to-earnings ratio of 11.96, a PEG ratio of 0.79 and a beta of 0.83. Group 1 Automotive has a twelve month low of $274.27 and a twelve month high of $488.39. The company has a current ratio of 0.95, a quick ratio of 0.21 and a debt-to-equity ratio of 1.00.

Group 1 Automotive (NYSE:GPI) 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 15.74%. The business’s quarterly revenue was down 5.6% on a year-over-year basis. During the same period in the previous year, the company earned $10.82 earnings per share. Equities research analysts expect that Group 1 Automotive will post 41.28 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Monday, June 1st. Group 1 Automotive’s dividend payout ratio (DPR) is presently 8.40%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Group 1 Automotive by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,766 shares of the company’s stock worth $2,966,000 after purchasing an additional 227 shares during the last quarter. Millennium Management LLC lifted its position in shares of Group 1 Automotive by 20.3% during the 1st quarter. Millennium Management LLC now owns 37,028 shares of the company’s stock worth $14,143,000 after purchasing an additional 6,239 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Group 1 Automotive in the first quarter valued at approximately $229,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Group 1 Automotive by 6.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company’s stock worth $15,993,000 after acquiring an additional 2,452 shares during the last quarter. Finally, American Century Companies Inc. increased its position in Group 1 Automotive by 46.7% during the second quarter. American Century Companies Inc. now owns 2,753 shares of the company’s stock worth $1,202,000 after acquiring an additional 877 shares during the period. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive News Summary

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Group 1 agreed to acquire 10 Hennessy Automobile Companies dealerships and related real estate in Atlanta. The transaction is expected to add approximately $1.7 billion in annualized revenue and be immediately accretive to earnings per share after closing, strengthening Group 1’s dealership cluster strategy. The company also completed a $50 million annualized U.S. cost-reduction initiative. Group 1 Hennessy acquisition announcement
• Neutral Sentiment: Group 1 ended the quarter with 251 dealerships across the U.S. and U.K. Management’s earnings presentation and conference call provided additional detail on operating trends, the cost-savings program and the proposed Hennessy acquisition, but the acquisition remains subject to regulatory approvals and customary closing conditions. Group 1 Automotive second-quarter earnings presentation
• Negative Sentiment: Second-quarter results missed Wall Street expectations. Adjusted EPS was $9.61, below consensus estimates ranging from $10.60 to $10.79, while revenue of $5.39 billion fell short of approximately $5.66 billion. Revenue declined 5.6% year over year, and earnings were lower than the prior-year period as consumer spending softened. Net income from continuing operations fell to $103.0 million from $139.8 million. Group 1 Automotive second-quarter earnings miss
• Negative Sentiment: JPMorgan downgraded GPI from “overweight” to “neutral” and reduced its price target from $380 to $320. Although the revised target implies potential upside, the downgrade signals less confidence in near-term outperformance following the earnings shortfall. Benzinga report on JPMorgan’s Group 1 Automotive downgrade

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.