Group 1 Automotive Inc. (NYSE:GPI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “Group 1 Automotive's dependence on certain auto manufacturers and intensifying competition in the automotive market remain concerns. The company's cash is locked up in inventories to a large extend, which can affect short-term liquidity. Group 1 Automotive’s earnings estimates have been stable lately. The company has a mixed record of surprises in recent quarters.”
Several other research analysts have also recently issued reports on GPI. Buckingham Research raised Group 1 Automotive from a “neutral” rating to a “buy” rating in a research note on Wednesday, July 20th. Seaport Global Securities initiated coverage on Group 1 Automotive in a research note on Tuesday, August 9th. They issued a “neutral” rating on the stock. TheStreet raised Group 1 Automotive from a “hold” rating to a “buy” rating in a research note on Thursday, September 15th. Finally, Goldman Sachs Group Inc. reissued a “neutral” rating and issued a $61.00 price objective (down previously from $64.00) on shares of Group 1 Automotive in a research note on Saturday, October 8th. Two analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the stock. Group 1 Automotive has a consensus rating of “Hold” and an average price target of $64.00.
Shares of Group 1 Automotive (NYSE:GPI) opened at 62.73 on Thursday. Group 1 Automotive has a 12-month low of $47.31 and a 12-month high of $89.64. The firm has a 50 day moving average price of $61.64 and a 200-day moving average price of $59.16. The company has a market cap of $1.30 billion, a price-to-earnings ratio of 15.76 and a beta of 1.58.
Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings data on Thursday, July 28th. The company reported $2.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.07. Group 1 Automotive had a return on equity of 17.97% and a net margin of 0.82%. The company had revenue of $2.10 billion for the quarter, compared to analysts’ expectations of $2.86 billion. During the same quarter in the prior year, the firm earned $1.98 earnings per share. Group 1 Automotive’s revenue was up 2.1% compared to the same quarter last year. On average, equities analysts expect that Group 1 Automotive will post $7.54 earnings per share for the current fiscal year.
In other news, VP Peter C. Delongchamps sold 7,500 shares of the stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $61.22, for a total transaction of $459,150.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Darryl M. Burman sold 2,000 shares of the stock in a transaction on Monday, August 29th. The shares were sold at an average price of $58.90, for a total value of $117,800.00. Following the sale, the vice president now owns 72,633 shares of the company’s stock, valued at approximately $4,278,083.70. The disclosure for this sale can be found here. Company insiders own 7.00% of the company’s stock.
Several hedge funds have recently modified their holdings of the stock. Adage Capital Partners GP L.L.C. acquired a new stake in shares of Group 1 Automotive during the first quarter valued at approximately $26,106,000. UBS Group AG raised its stake in shares of Group 1 Automotive by 395.3% in the first quarter. UBS Group AG now owns 294,271 shares of the company’s stock valued at $17,270,000 after buying an additional 234,855 shares in the last quarter. Lakewood Capital Management LP raised its stake in shares of Group 1 Automotive by 62.1% in the second quarter. Lakewood Capital Management LP now owns 443,625 shares of the company’s stock valued at $21,897,000 after buying an additional 170,000 shares in the last quarter. Towle & Co. raised its stake in shares of Group 1 Automotive by 125.7% in the second quarter. Towle & Co. now owns 265,491 shares of the company’s stock valued at $13,105,000 after buying an additional 147,850 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in shares of Group 1 Automotive by 131.7% in the first quarter. Goldman Sachs Group Inc. now owns 219,234 shares of the company’s stock valued at $12,867,000 after buying an additional 124,602 shares in the last quarter. Hedge funds and other institutional investors own 97.21% of the company’s stock.
About Group 1 Automotive
Group 1 Automotive, Inc is an operator in the automotive retail industry. The Company, through its dealerships, sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services, and sells vehicle parts.
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