Group 1 Automotive (NYSE:GPI) Sets New 52-Week Low After Analyst Downgrade

Group 1 Automotive, Inc. (NYSE:GPI)’s share price reached a new 52-week low during mid-day trading on Monday after Morgan Stanley lowered their price target on the stock from $460.00 to $400.00. Morgan Stanley currently has an overweight rating on the stock. Group 1 Automotive traded as low as $317.46 and last traded at $323.27, with a volume of 8131 shares trading hands. The stock had previously closed at $325.74.

A number of other analysts have also commented on GPI. Weiss Ratings lowered shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. 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. Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a research report on Friday, January 9th. JPMorgan Chase & Co. upgraded shares of Group 1 Automotive from a “neutral” rating to an “overweight” rating and set a $370.00 price objective for the company in a research note on Friday, February 20th. Finally, Barclays set a $470.00 price target on shares of Group 1 Automotive in a research report on Monday, February 2nd. Six equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $458.00.

Institutional Investors Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Salomon & Ludwin LLC bought a new stake in Group 1 Automotive during the third quarter worth about $26,000. Signaturefd LLC raised its stake in shares of Group 1 Automotive by 54.9% during the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock valued at $31,000 after acquiring an additional 28 shares during the last quarter. MAI Capital Management raised its holdings in shares of Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company’s stock valued at $32,000 after acquiring an additional 42 shares in the last quarter. First Horizon Corp lifted 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 worth $42,000 after acquiring an additional 97 shares during the period. Finally, Elevation Point Wealth Partners LLC purchased a new position in Group 1 Automotive during the 2nd quarter valued at $43,000. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Stock Down 2.6%

The company’s fifty day simple moving average is $372.97 and its 200 day simple moving average is $409.40. The firm has a market capitalization of $3.78 billion, a P/E ratio of 12.75 and a beta of 0.90. The company has a current ratio of 1.08, a quick ratio of 0.27 and a debt-to-equity ratio of 1.23.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings results on Thursday, January 29th. The company reported $8.49 earnings per share 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 17.39%. The firm had revenue of $5.58 billion for the quarter, compared to the consensus estimate of $5.71 billion. During the same quarter in the prior year, the firm earned $10.02 earnings per share. The company’s revenue for the quarter was up .6% compared to the same quarter last year. Research analysts expect that Group 1 Automotive, Inc. will post 41 EPS for the current year.

Group 1 Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be given a $0.55 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This is a positive change from Group 1 Automotive’s previous quarterly dividend of $0.50. This represents a $2.20 annualized dividend and a yield of 0.7%. Group 1 Automotive’s payout ratio is 8.80%.

Group 1 Automotive announced that its board has initiated a share buyback plan on Tuesday, November 11th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to repurchase up to 10.4% of its stock through open market purchases. Stock buyback plans are often 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.