Group 1 Automotive (NYSE:GPI) Hits New 1-Year Low – What’s Next?

Group 1 Automotive, Inc. (NYSE:GPI) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $327.00 and last traded at $327.5620, with a volume of 34912 shares. The stock had previously closed at $333.86.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Evercore initiated coverage on Group 1 Automotive in a research note on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective on the stock. Morgan Stanley set a $460.00 price target on shares of Group 1 Automotive in a research report on Monday, December 8th. Weiss Ratings downgraded shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. JPMorgan Chase & Co. lowered their target price on shares of Group 1 Automotive from $410.00 to $370.00 and set a “neutral” rating on the stock in a research note on Tuesday, February 10th. Finally, Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a research report on Friday, January 9th. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $466.57.

Group 1 Automotive Stock Performance

The firm’s fifty day moving average price is $381.82 and its 200-day moving average price is $413.54. The company has a market cap of $3.96 billion, a P/E ratio of 13.26 and a beta of 0.90. The company has a current ratio of 1.08, a quick ratio of 0.25 and a debt-to-equity ratio of 1.23.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Thursday, January 29th. The company reported $8.49 earnings per share for the quarter, missing the consensus estimate of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.39%. The company had revenue of $5.58 billion during the quarter, compared to the consensus estimate of $5.71 billion. During the same quarter in the previous year, the business posted $10.02 EPS. The firm’s quarterly revenue was up .6% on a year-over-year basis. As a group, research analysts forecast that Group 1 Automotive, Inc. will post 41 EPS for the current fiscal year.

Group 1 Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.55 per share. This is a boost from Group 1 Automotive’s previous quarterly dividend of $0.50. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, March 2nd. Group 1 Automotive’s dividend payout ratio (DPR) is presently 8.00%.

Group 1 Automotive declared that its Board of Directors has approved a share repurchase plan on Tuesday, November 11th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to purchase up to 10.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Group 1 Automotive

Several institutional investors and hedge funds have recently bought and sold shares of GPI. Keybank National Association OH acquired a new position in Group 1 Automotive during the 2nd quarter worth about $335,000. Prudential Financial Inc. increased its position in Group 1 Automotive by 2.7% in the 2nd quarter. Prudential Financial Inc. now owns 25,668 shares of the company’s stock valued at $11,209,000 after acquiring an additional 681 shares in the last quarter. Y Intercept Hong Kong Ltd raised its stake in shares of Group 1 Automotive by 133.8% in the second quarter. Y Intercept Hong Kong Ltd now owns 2,974 shares of the company’s stock worth $1,299,000 after acquiring an additional 1,702 shares during the last quarter. Envestnet Asset Management Inc. lifted its position in shares of Group 1 Automotive by 3.5% during the second quarter. Envestnet Asset Management Inc. now owns 44,751 shares of the company’s stock worth $19,543,000 after purchasing an additional 1,505 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd grew its stake in shares of Group 1 Automotive by 778.3% during the second quarter. Dynamic Technology Lab Private Ltd now owns 5,270 shares of the company’s stock valued at $2,301,000 after purchasing an additional 4,670 shares during the last quarter. Institutional investors 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.