Group 1 Automotive (NYSE:GPI) Shares Gap Down After Earnings Miss

Group 1 Automotive, Inc. (NYSE:GPI) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $396.41, but opened at $372.06. Group 1 Automotive shares last traded at $375.2260, with a volume of 85,290 shares traded.

The company reported $8.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). The firm had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.71 billion. Group 1 Automotive had a return on equity of 18.08% and a net margin of 1.67%.The company’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the business earned $10.02 EPS.

Group 1 Automotive Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Monday, December 1st. Group 1 Automotive’s payout ratio is currently 7.00%.

Group 1 Automotive declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 11th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 10.4% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its shares are undervalued.

More Group 1 Automotive News

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

• Positive Sentiment: Company still delivered modest revenue growth (+0.6% YoY) and a strong return on equity (18.08%), showing underlying profitability despite the quarter’s headwinds. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Company released the earnings press release, slide deck and conference call materials for investors to review full details and management commentary. Listen to Conference Call / View Press Release / Slide Deck
• Neutral Sentiment: Analyst-focused pieces previewed and reviewed expectations and metrics for the quarter, offering context for possible estimate revisions after the print. These are useful for assessing whether sell‑side forecasts will shift. Should Value Investors Buy Group 1 Automotive (GPI) Stock?
• Negative Sentiment: Q4 EPS of $8.49 missed consensus ($9.36) and declined sharply from $10.02 a year earlier — a key driver of the stock drop as profitability weakened versus last year. Group 1 Automotive (GPI) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Revenue of $5.58B missed the consensus ~$5.71B, and outlets highlight that weaker new-car sales weighed on results — a demand indicator that could pressure near-term margins and guidance. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh
• Negative Sentiment: Market write-ups and earnings snapshots emphasize the EPS and revenue misses and examine key metrics versus estimates — increasing the likelihood of downward estimate revisions and short-term selling pressure. Group 1 Automotive (GPI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Neutral Sentiment: Benzinga and regional coverage provide outlook discussion and context for how the quarter affects future earnings expectations — important for investors deciding whether the miss alters full‑year forecasts. Examining the Future: Group 1 Automotive’s Earnings Outlook
• Neutral Sentiment: Local business coverage offers a concise Q4 snapshot summarizing results, headwinds and management commentary for regional investor readers. Group 1 Automotive: Q4 Earnings Snapshot

Wall Street Analyst Weigh In

Several analysts have commented on GPI shares. Benchmark reiterated a “hold” rating on shares of Group 1 Automotive in a research report on Friday, January 9th. Evercore ISI assumed coverage on shares of Group 1 Automotive in a research report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective for the company. Weiss Ratings lowered Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. JPMorgan Chase & Co. cut their price objective on Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Finally, Morgan Stanley set a $460.00 target price on shares of Group 1 Automotive in a report on Monday, December 8th. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Group 1 Automotive has an average rating of “Hold” and a consensus target price of $473.25.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Salomon & Ludwin LLC acquired a new stake in shares of Group 1 Automotive in the 3rd quarter valued at approximately $26,000. Signaturefd LLC lifted its stake in Group 1 Automotive by 54.9% in 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 last quarter. MAI Capital Management grew its holdings in Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company’s stock worth $32,000 after purchasing an additional 42 shares during the period. First Horizon Corp raised its stake in Group 1 Automotive by 881.8% in the fourth quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after buying an additional 97 shares during the period. Finally, Elevation Point Wealth Partners LLC acquired a new stake in Group 1 Automotive during the second quarter worth approximately $43,000. 99.92% of the stock is owned by institutional investors and hedge funds.

Group 1 Automotive Price Performance

The company has a debt-to-equity ratio of 1.06, a current ratio of 1.06 and a quick ratio of 0.25. The firm has a market cap of $4.77 billion, a P/E ratio of 13.13 and a beta of 0.89. The company’s 50-day moving average is $402.19 and its two-hundred day moving average is $422.73.

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.