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

Group 1 Automotive, Inc. (NYSE:GPI) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 changing hands.

The company reported $8.49 earnings per share for the quarter, missing the consensus estimate of $9.36 by ($0.87). The business 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 business’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter in the previous year, the company posted $10.02 EPS.

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Monday, December 1st. This represents a $2.00 dividend on an annualized basis and a yield of 0.5%. Group 1 Automotive’s dividend payout ratio (DPR) is 7.00%.

Group 1 Automotive declared that its Board of Directors has initiated a share repurchase program on Tuesday, November 11th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 10.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Trending Headlines about Group 1 Automotive

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

A number of equities analysts recently commented on the company. Benchmark reiterated a “hold” rating on shares of Group 1 Automotive in a research report on Friday, January 9th. Morgan Stanley set a $460.00 price objective on shares of Group 1 Automotive in a research report on Monday, December 8th. 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 ISI started coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price target for the company. Finally, Barclays decreased their price objective on Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating on the stock in a report on Wednesday, January 21st. Five equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Group 1 Automotive has an average rating of “Hold” and an average target price of $473.25.

Institutional Trading of Group 1 Automotive

Large investors have recently modified their holdings of the stock. Salomon & Ludwin LLC purchased a new stake in Group 1 Automotive during the 3rd quarter worth about $26,000. Signaturefd LLC boosted its holdings in Group 1 Automotive by 54.9% in the 4th quarter. Signaturefd LLC now owns 79 shares of the company’s stock worth $31,000 after acquiring an additional 28 shares during the period. MAI Capital Management grew its position 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 worth $32,000 after buying an additional 42 shares in the last quarter. First Horizon Corp boosted its holdings in shares of Group 1 Automotive by 881.8% during the fourth quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after acquiring an additional 97 shares during the period. Finally, Elevation Point Wealth Partners LLC bought a new position in shares of Group 1 Automotive in the second quarter valued at $43,000. Hedge funds and other institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Stock Down 4.6%

The company has a market cap of $4.77 billion, a price-to-earnings ratio of 13.13 and a beta of 0.89. The business has a 50-day simple moving average of $402.19 and a two-hundred day simple moving average of $422.73. The company has a quick ratio of 0.25, a current ratio of 1.06 and a debt-to-equity ratio of 1.06.

About Group 1 Automotive

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.