Group 1 Automotive (NYSE:GPI) to Buyback $500.00 million in Outstanding Stock

Group 1 Automotive (NYSE:GPI) announced that its Board of Directors has initiated a share buyback program on Tuesday, November 11th, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 10.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Group 1 Automotive Stock Performance

NYSE:GPI opened at $391.56 on Friday. The firm has a market capitalization of $4.95 billion, a PE ratio of 13.70, a PEG ratio of 1.09 and a beta of 0.91. The stock’s fifty day moving average is $431.97 and its 200 day moving average is $435.73. Group 1 Automotive has a fifty-two week low of $355.91 and a fifty-two week high of $490.09. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.24 and a current ratio of 1.06.

Group 1 Automotive (NYSE:GPI) last announced its earnings results on Tuesday, October 28th. The company reported $10.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.64 by ($0.19). The business had revenue of $5.78 billion for the quarter, compared to analysts’ expectations of $5.67 billion. Group 1 Automotive had a net margin of 1.67% and a return on equity of 18.08%. The firm’s quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the firm earned $9.90 EPS. On average, sell-side analysts anticipate that Group 1 Automotive will post 41 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be 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 is Monday, December 1st. Group 1 Automotive’s dividend payout ratio is presently 7.00%.

Analyst Ratings Changes

Several brokerages have recently commented on GPI. JPMorgan Chase & Co. lowered their price objective on Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Weiss Ratings reissued a “buy (b)” rating on shares of Group 1 Automotive in a research note on Wednesday, October 8th. Morgan Stanley upped their price target on Group 1 Automotive from $470.00 to $485.00 and gave the stock an “overweight” rating in a research note on Thursday, August 14th. Citigroup reaffirmed a “buy” rating on shares of Group 1 Automotive in a report on Thursday, September 25th. Finally, Zacks Research downgraded shares of Group 1 Automotive from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 13th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $478.88.

Insider Buying and Selling

In other news, Director Lincoln Pereira sold 7,000 shares of the business’s stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $469.34, for a total value of $3,285,380.00. Following the completion of the sale, the director owned 82,967 shares in the company, valued at approximately $38,939,731.78. The trade was a 7.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 2.10% of the company’s stock.

About Group 1 Automotive

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.