Group 1 Automotive (NYSE:GPI) Reaches New 1-Year Low – Here’s Why

Shares of Group 1 Automotive, Inc. (NYSE:GPI) hit a new 52-week low during trading on Thursday . The stock traded as low as $338.90 and last traded at $341.4320, with a volume of 205414 shares changing hands. The stock had previously closed at $357.84.

Analyst Upgrades and Downgrades

GPI has been the subject of a number of recent analyst reports. Weiss Ratings downgraded Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, December 29th. JPMorgan Chase & Co. reduced their price target on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating for the company in a research report on Wednesday, November 5th. Evercore initiated coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price objective for the company. Barclays set a $470.00 target price on shares of Group 1 Automotive in a research note on Monday. Finally, Morgan Stanley set a $460.00 price target on shares of Group 1 Automotive in a report on Monday, December 8th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Group 1 Automotive presently has an average rating of “Moderate Buy” and an average price target of $472.29.

Group 1 Automotive Price Performance

The firm’s 50 day moving average price is $395.37 and its two-hundred day moving average price is $418.77. 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 stock has a market cap of $4.38 billion, a PE ratio of 13.88 and a beta of 0.90.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing the consensus estimate of $9.36 by ($0.87). Group 1 Automotive had a return on equity of 17.00% and a net margin of 1.44%.The business had revenue of $5.58 billion during the quarter, compared to the consensus estimate of $5.71 billion. During the same period last year, the business posted $10.02 earnings per share. The firm’s quarterly revenue was up .6% on a year-over-year basis. On average, research analysts expect that Group 1 Automotive, Inc. will post 41 earnings per share for the current year.

Group 1 Automotive Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were paid a $0.50 dividend. The ex-dividend date was Monday, December 1st. This represents a $2.00 annualized dividend and a yield of 0.6%. Group 1 Automotive’s dividend payout ratio (DPR) is currently 8.00%.

Group 1 Automotive declared that its Board of Directors has approved a stock repurchase program on Tuesday, November 11th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to buy up to 10.4% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Group 1 Automotive

A number of large investors have recently modified their holdings of GPI. Keybank National Association OH purchased a new stake in shares of Group 1 Automotive during the second quarter valued at approximately $335,000. Prudential Financial Inc. raised its holdings in Group 1 Automotive by 2.7% during the 2nd quarter. Prudential Financial Inc. now owns 25,668 shares of the company’s stock valued at $11,209,000 after buying an additional 681 shares during the last quarter. Y Intercept Hong Kong Ltd boosted its position in Group 1 Automotive by 133.8% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 2,974 shares of the company’s stock valued at $1,299,000 after buying an additional 1,702 shares during the period. Envestnet Asset Management Inc. grew its holdings in Group 1 Automotive by 3.5% in the 2nd quarter. Envestnet Asset Management Inc. now owns 44,751 shares of the company’s stock worth $19,543,000 after acquiring an additional 1,505 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd increased its position in shares of Group 1 Automotive by 778.3% in the second quarter. Dynamic Technology Lab Private Ltd now owns 5,270 shares of the company’s stock valued at $2,301,000 after acquiring an additional 4,670 shares during the period. 99.92% of the stock is currently owned by institutional investors.

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.