Zacks Investment Research Upgrades Group 1 Automotive Inc. (GPI) to Buy
Group 1 Automotive Inc. (NYSE:GPI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage currently has a $69.00 target price on the stock. Zacks Investment Research’s target price would indicate a potential upside of 13.23% from the stock’s previous close.
According to Zacks, “Group 1 Automotive has been gaining from numerous acquisitions and the rising sales of new vehicles. Also, it remains focused on returning value to shareholders through share repurchases and dividend payments. However, dependence on certain auto manufacturers and intensifying competition in the automotive market remain concerns. Group 1 Automotive’s earnings estimates have been stable lately. The company has a mixed record of surprises in recent quarters.”
A number of other equities analysts also recently commented on the stock. TheStreet raised shares of Group 1 Automotive from a “hold” rating to a “buy” rating in a research note on Thursday, September 15th. Buckingham Research raised shares of Group 1 Automotive from a “neutral” rating to a “buy” rating in a research note on Wednesday, July 20th. Finally, Seaport Global Securities initiated coverage on shares of Group 1 Automotive in a research note on Tuesday, August 9th. They issued a “neutral” rating on the stock. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $78.33.
Shares of Group 1 Automotive (NYSE:GPI) opened at 60.94 on Tuesday. The stock’s 50 day moving average is $60.15 and its 200 day moving average is $58.66. Group 1 Automotive has a 52 week low of $47.31 and a 52 week high of $89.64. The firm has a market cap of $1.26 billion, a P/E ratio of 15.31 and a beta of 1.63.
Group 1 Automotive (NYSE:GPI) last issued its earnings results on Thursday, July 28th. The company reported $2.16 EPS for the quarter, beating the Zacks’ consensus estimate of $2.09 by $0.07. Group 1 Automotive had a net margin of 0.82% and a return on equity of 17.97%. The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.86 billion. During the same quarter last year, the firm posted $1.98 EPS. The business’s revenue for the quarter was up 2.1% compared to the same quarter last year. On average, equities research analysts predict that Group 1 Automotive will post $7.54 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 1.51%. The ex-dividend date was Tuesday, August 30th. Group 1 Automotive’s dividend payout ratio (DPR) is 22.66%.
In other news, CEO Earl J. Hesterberg sold 10,000 shares of the business’s stock in a transaction dated Thursday, August 18th. The shares were sold at an average price of $59.97, for a total value of $599,700.00. Following the completion of the sale, the chief executive officer now owns 165,251 shares of the company’s stock, valued at approximately $9,910,102.47. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Peter C. Delongchamps sold 7,500 shares of the business’s stock in a transaction dated Tuesday, September 6th. The stock was sold at an average price of $61.22, for a total transaction of $459,150.00. The disclosure for this sale can be found here. Corporate insiders own 7.00% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. increased its stake in 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 during the last quarter. UBS Group AG increased its stake in 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 during the last quarter. State Street Corp increased its stake in Group 1 Automotive by 5.2% in the first quarter. State Street Corp now owns 615,799 shares of the company’s stock valued at $36,135,000 after buying an additional 30,167 shares during the last quarter. Palisade Capital Management LLC NJ increased its stake in Group 1 Automotive by 26.1% in the first quarter. Palisade Capital Management LLC NJ now owns 162,384 shares of the company’s stock valued at $9,530,000 after buying an additional 33,588 shares during the last quarter. Finally, NN Investment Partners Holdings N.V. bought a new stake in Group 1 Automotive during the first quarter valued at $586,000. 97.19% of the stock is owned by institutional investors.
Group 1 Automotive Company Profile
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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