Group 1 Automotive (NYSE:GPI) Hits New 12-Month High – Should You Buy?

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $447.73 and last traded at $447.73, with a volume of 1683 shares. The stock had previously closed at $436.22.

Analyst Ratings Changes

Several equities research analysts have commented on GPI shares. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. JPMorgan Chase & Co. increased their price objective on Group 1 Automotive from $420.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, November 5th. Jefferies Financial Group initiated coverage on shares of Group 1 Automotive in a research note on Friday, December 13th. They set a “buy” rating and a $500.00 target price on the stock. Guggenheim increased their target price on shares of Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a research report on Thursday, November 21st. Finally, Morgan Stanley upgraded shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $285.00 to $430.00 in a research report on Wednesday, September 25th. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, Group 1 Automotive has a consensus rating of “Moderate Buy” and an average price target of $437.67.

Group 1 Automotive Trading Up 1.9 %

The company has a quick ratio of 0.24, a current ratio of 1.00 and a debt-to-equity ratio of 0.91. The company’s 50-day moving average is $420.40 and its 200-day moving average is $373.63. The stock has a market capitalization of $5.92 billion, a price-to-earnings ratio of 11.85 and a beta of 1.36.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 EPS for the quarter, beating the consensus estimate of $9.87 by $0.03. Group 1 Automotive had a net margin of 2.68% and a return on equity of 18.49%. The firm had revenue of $5.22 billion for the quarter, compared to analyst estimates of $5.06 billion. During the same quarter in the previous year, the company earned $12.07 EPS. The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. Research analysts anticipate that Group 1 Automotive, Inc. will post 38.37 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were given a $0.47 dividend. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.88 dividend on an annualized basis and a yield of 0.42%. Group 1 Automotive’s payout ratio is currently 5.01%.

Group 1 Automotive announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 12th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 9.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other Group 1 Automotive news, VP Edward Mckissic sold 79 shares of the business’s stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $374.01, for a total transaction of $29,546.79. Following the sale, the vice president now directly owns 6,259 shares in the company, valued at $2,340,928.59. This represents a 1.25 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lincoln Pereira sold 6,000 shares of Group 1 Automotive stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $426.68, for a total transaction of $2,560,080.00. Following the completion of the transaction, the director now owns 98,467 shares of the company’s stock, valued at $42,013,899.56. This trade represents a 5.74 % decrease in their position. The disclosure for this sale can be found here. Insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

Large investors have recently bought and sold shares of the stock. Assetmark Inc. boosted its stake in shares of Group 1 Automotive by 51.9% in the 3rd quarter. Assetmark Inc. now owns 82 shares of the company’s stock valued at $31,000 after buying an additional 28 shares during the period. Harbor Capital Advisors Inc. purchased a new position in Group 1 Automotive in the third quarter worth approximately $36,000. Avior Wealth Management LLC acquired a new position in Group 1 Automotive during the 3rd quarter worth approximately $46,000. GAMMA Investing LLC grew its holdings in Group 1 Automotive by 70.4% during the 4th quarter. GAMMA Investing LLC now owns 121 shares of the company’s stock worth $51,000 after acquiring an additional 50 shares in the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of Group 1 Automotive in the 2nd quarter valued at $48,000. Hedge funds and other institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

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.