Group 1 Automotive, Inc. (NYSE:GPI) Stock Has Average Target Price of $341.67

Group 1 Automotive, Inc. (NYSE:GPI) has been assigned an average recommendation of “Hold” from the ten research firms that are presently covering the stock, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, two have given a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $340.33.

A number of research analysts recently commented on GPI shares. Evercore set a $360.00 price objective on shares of Group 1 Automotive in a research report on Tuesday, August 4th. Morgan Stanley lowered shares of Group 1 Automotive from an “equal weight” rating to an “underweight” rating and cut their target price for the stock from $300.00 to $232.00 in a research report on Monday, October 5th. UBS Group lowered their price objective on shares of Group 1 Automotive from $271.00 to $259.00 and set a “neutral” rating on the stock in a research note on Thursday. Weiss Ratings lowered Group 1 Automotive from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, August 17th. Finally, Zacks Research downgraded shares of Group 1 Automotive from a “hold” rating to a “strong sell” rating in a report on Monday, August 10th.

Insider Activity at Group 1 Automotive

In related news, SVP Gillian A. Hobson sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, October 29th. The shares were sold at an average price of $258.24, for a total transaction of $516,480.00. Following the completion of the sale, the senior vice president directly owned 7,543 shares of the company’s stock, valued at $1,947,904.32. The trade was a 20.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, major shareholder Conifer Management, L.L.C. purchased 20,471 shares of the stock in a transaction dated Monday, October 26th. The stock was bought at an average cost of $246.14 per share, with a total value of $5,038,731.94. Following the completion of the purchase, the insider owned 2,012,290 shares in the company, valued at $495,305,060.60. The trade was a 1.03% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders have bought 820,030 shares of company stock valued at $211,496,571. 2.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC increased its position in Group 1 Automotive by 445.8% during the third quarter. Salomon & Ludwin LLC now owns 131 shares of the company’s stock worth $31,000 after buying an additional 107 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Group 1 Automotive during the second quarter worth $42,000. Anchor Investment Management LLC boosted its stake in shares of Group 1 Automotive by 112.0% in the 2nd quarter. Anchor Investment Management LLC now owns 212 shares of the company’s stock valued at $62,000 after purchasing an additional 112 shares in the last quarter. Allworth Financial LP acquired a new position in Group 1 Automotive in the 2nd quarter worth about $75,000. Finally, Group One Trading LLC acquired a new stake in Group 1 Automotive during the 2nd quarter worth approximately $79,000. Institutional investors and hedge funds own 99.92% of the company’s stock.

Group 1 Automotive Stock Performance

Shares of GPI opened at $258.99 on Friday. Group 1 Automotive has a 52-week low of $224.65 and a 52-week high of $429.00. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. The firm has a market capitalization of $3.09 billion, a PE ratio of 8.20, a P/E/G ratio of 1.53 and a beta of 0.92. The firm has a 50-day moving average price of $254.68 and a 200 day moving average price of $308.12.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Wednesday, October 28th. The company reported $9.36 earnings per share for the quarter, missing analysts’ consensus estimates of $9.50 by ($0.14). Group 1 Automotive had a return on equity of 15.18% and a net margin of 1.75%. The firm had revenue of $5.40 billion during the quarter, compared to analyst estimates of $5.58 billion. During the same quarter last year, the company earned $10.45 earnings per share. The business’s revenue for the quarter was down 6.7% on a year-over-year basis. On average, sell-side analysts anticipate that Group 1 Automotive will post 37.68 earnings per share 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. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, September 1st. Group 1 Automotive’s dividend payout ratio is 6.96%.

Trending Headlines about Group 1 Automotive

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

• Positive Sentiment: Investors are refocusing on Group 1 Automotive’s potentially undervalued valuation following the Q3 report. The company remains profitable, and its earnings multiple is relatively modest, which could support the stock if operating conditions stabilize. Group 1 Automotive Q3 Results Put Its Undervalued Narrative Back In Focus
• Positive Sentiment: Recent purchases by Conifer Management, totaling 79,529 shares across two reported transactions, signal that an investment holder sees value in GPI despite near-term earnings weakness. Conifer Management Buys 34,529 Shares
• Neutral Sentiment: UBS lowered its price target from $271 to $259 and maintained a neutral rating, indicating limited expected upside based on current valuation. UBS Group Stock Recommendations
• Negative Sentiment: Third-quarter adjusted earnings of $9.36 per share missed analysts’ estimates, while revenue of $5.40 billion fell short of the roughly $5.58 billion consensus and declined 6.7% year over year. EPS also dropped from $10.45 in the prior-year quarter. Group 1 Automotive Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Management’s earnings-call commentary highlighted continued growth opportunities but also strain on margins, a concern for an auto retailer operating with a net margin of just 1.31%. Group 1 Automotive Earnings Call Highlights Growth Amid Strain
• Negative Sentiment: Senior Vice President Gillian A. Hobson sold 2,000 shares for approximately $516,480, reducing her direct ownership by about 21%. Although not necessarily a broader management signal, the sale adds a modest negative headline. Group 1 Automotive Insider Sold Shares Worth $516,480

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.

In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.

Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.