FY2024 EPS Estimate for Group 1 Automotive Raised by Analyst

Group 1 Automotive, Inc. (NYSE:GPI) – Zacks Research upped their FY2024 earnings per share estimates for shares of Group 1 Automotive in a report issued on Wednesday, November 13th. Zacks Research analyst L. Shahu now anticipates that the company will earn $38.50 per share for the year, up from their prior forecast of $38.27. The consensus estimate for Group 1 Automotive’s current full-year earnings is $38.60 per share. Zacks Research also issued estimates for Group 1 Automotive’s Q4 2024 earnings at $9.31 EPS, Q1 2025 earnings at $9.61 EPS, Q2 2025 earnings at $10.25 EPS, Q4 2025 earnings at $9.90 EPS and FY2026 earnings at $41.99 EPS.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings data on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.87 by $0.03. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. The firm had revenue of $5.22 billion during the quarter, compared to analysts’ expectations of $5.06 billion. During the same period in the prior year, the business earned $12.07 EPS. The company’s revenue for the quarter was up 11.0% compared to the same quarter last year.

Several other brokerages have also recently weighed in on GPI. Bank of America dropped their target price on Group 1 Automotive from $445.00 to $435.00 and set a “buy” rating for the company in a report on Monday, July 22nd. Stephens initiated coverage on Group 1 Automotive in a report on Thursday, September 12th. They set an “equal weight” rating and a $394.00 target price for the company. Morgan Stanley upgraded Group 1 Automotive from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $285.00 to $430.00 in a report on Wednesday, September 25th. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a report on Friday, November 8th. Finally, JPMorgan Chase & Co. increased their price objective on Group 1 Automotive from $420.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, November 5th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $397.80.

Group 1 Automotive Price Performance

GPI opened at $411.23 on Friday. The stock has a 50-day moving average price of $370.72 and a 200-day moving average price of $337.59. Group 1 Automotive has a 12-month low of $255.73 and a 12-month high of $422.28. The company has a current ratio of 1.00, a quick ratio of 0.24 and a debt-to-equity ratio of 0.91. The stock has a market capitalization of $5.48 billion, a P/E ratio of 10.96, a PEG ratio of 2.15 and a beta of 1.33.

Group 1 Automotive announced that its Board of Directors has approved a stock buyback program on Tuesday, November 12th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to reacquire up to 9.3% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Group 1 Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.46%. The ex-dividend date is Monday, December 2nd. Group 1 Automotive’s payout ratio is presently 5.01%.

Insider Activity

In other Group 1 Automotive news, VP Edward Mckissic sold 79 shares of Group 1 Automotive stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total transaction of $29,546.79. Following the completion of the transaction, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. The trade was a 1.25 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GPI. The Manufacturers Life Insurance Company raised its stake in shares of Group 1 Automotive by 22.0% in the second quarter. The Manufacturers Life Insurance Company now owns 639,142 shares of the company’s stock worth $190,004,000 after purchasing an additional 115,143 shares during the last quarter. FMR LLC raised its stake in shares of Group 1 Automotive by 133.0% in the third quarter. FMR LLC now owns 407,930 shares of the company’s stock worth $156,253,000 after purchasing an additional 232,846 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Group 1 Automotive by 1.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 152,923 shares of the company’s stock worth $58,576,000 after purchasing an additional 1,735 shares during the last quarter. Woodson Capital Management LP raised its stake in shares of Group 1 Automotive by 114.6% in the first quarter. Woodson Capital Management LP now owns 142,500 shares of the company’s stock worth $41,643,000 after purchasing an additional 76,102 shares during the last quarter. Finally, Hennessy Advisors Inc. grew its holdings in shares of Group 1 Automotive by 18.1% in the second quarter. Hennessy Advisors Inc. now owns 108,500 shares of the company’s stock worth $32,255,000 after acquiring an additional 16,600 shares during the period. Hedge funds and other institutional investors own 99.92% 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.