Group 1 Automotive (NYSE:GPI) Reaches New 1-Year Low – Time to Sell?

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price reached a new 52-week low on Monday . The company traded as low as $297.31 and last traded at $301.68, with a volume of 14387 shares changing hands. The stock had previously closed at $299.90.

Wall Street Analyst Weigh In

GPI has been the topic of a number of analyst reports. Morgan Stanley decreased their target price on shares of Group 1 Automotive from $460.00 to $400.00 and set an “overweight” rating on the stock in a research report on Monday, March 2nd. Evercore assumed coverage on Group 1 Automotive in a report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price target for the company. Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a research note on Friday, January 9th. JPMorgan Chase & Co. upgraded Group 1 Automotive from a “neutral” rating to an “overweight” rating and set a $370.00 price objective on the stock in a report on Friday, February 20th. Finally, Weiss Ratings downgraded Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Group 1 Automotive presently has an average rating of “Moderate Buy” and a consensus price target of $458.00.

Group 1 Automotive Price Performance

The company’s 50-day moving average is $351.84 and its 200-day moving average is $397.03. The firm has a market capitalization of $3.55 billion, a price-to-earnings ratio of 11.89, a PEG ratio of 0.46 and a beta of 0.91. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.08 and a quick ratio of 0.27.

Group 1 Automotive (NYSE:GPI) last issued its quarterly earnings results on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing the consensus estimate of $9.36 by ($0.87). The company 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 17.39% and a net margin of 1.44%.The business’s revenue for the quarter was up .6% on a year-over-year basis. During the same period last year, the company posted $10.02 EPS. On average, research analysts expect that Group 1 Automotive, Inc. will post 41 earnings per share for the current year.

Group 1 Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, March 2nd. This is a positive change from Group 1 Automotive’s previous quarterly dividend of $0.50. Group 1 Automotive’s payout ratio is currently 8.80%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC purchased a new stake in shares of Group 1 Automotive during the 3rd quarter worth about $26,000. Signaturefd LLC raised its holdings in Group 1 Automotive by 54.9% in the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock valued at $31,000 after buying an additional 28 shares during the period. MAI Capital Management lifted its position in Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company’s stock valued at $32,000 after buying an additional 42 shares in the last quarter. First Horizon Corp lifted its position in 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 buying an additional 97 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC purchased a new stake in Group 1 Automotive during the second quarter worth approximately $43,000. Institutional investors and hedge funds own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

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.