Group 1 Automotive (NYSE:GPI) Sets New 12-Month High – Here’s What Happened

Group 1 Automotive, Inc. (NYSE:GPI) shares reached a new 52-week high on Tuesday . The stock traded as high as $449.58 and last traded at $453.31, with a volume of 95883 shares trading hands. The stock had previously closed at $444.80.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on GPI shares. JPMorgan Chase & Co. cut their price objective on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a research report on Friday. Guggenheim raised their target price on shares of Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a report on Thursday, November 21st. StockNews.com raised shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Morgan Stanley raised shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $285.00 to $430.00 in a research note on Wednesday, September 25th. Finally, Jefferies Financial Group assumed coverage on shares of Group 1 Automotive in a research report on Friday, December 13th. They set a “buy” rating and a $500.00 target price on the stock. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $436.83.

Group 1 Automotive Price Performance

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 company has a market capitalization of $6.01 billion, a PE ratio of 12.02 and a beta of 1.36. The stock’s 50-day moving average is $423.66 and its two-hundred day moving average is $377.94.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Wednesday, October 30th. The company reported $9.90 EPS for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $5.06 billion. During the same quarter in the prior year, the firm posted $12.07 earnings per share. The company’s quarterly revenue was up 11.0% on a year-over-year basis. On average, equities analysts predict that Group 1 Automotive, Inc. will post 38.36 EPS for the current year.

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were given a dividend of $0.47 per share. The ex-dividend date was Monday, December 2nd. This represents a $1.88 annualized dividend and a dividend yield of 0.42%. Group 1 Automotive’s dividend payout ratio (DPR) is 5.01%.

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

Insider Activity at Group 1 Automotive

In related news, VP Edward Mckissic sold 79 shares of Group 1 Automotive stock in a transaction dated Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total value of $29,546.79. Following the completion of the sale, the vice president now directly owns 6,259 shares in the company, valued at $2,340,928.59. The trade was a 1.25 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Lincoln Pereira sold 6,000 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $426.68, for a total transaction of $2,560,080.00. Following the transaction, the director now owns 98,467 shares in the company, valued at approximately $42,013,899.56. The trade was a 5.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Group 1 Automotive

Large investors have recently bought and sold shares of the business. The Manufacturers Life Insurance Company increased its holdings in shares of Group 1 Automotive by 22.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 639,142 shares of the company’s stock valued at $190,004,000 after acquiring an additional 115,143 shares during the period. State Street Corp grew its stake in Group 1 Automotive by 2.1% in the third quarter. State Street Corp now owns 541,766 shares of the company’s stock valued at $207,518,000 after purchasing an additional 10,969 shares during the last quarter. FMR LLC raised its holdings in 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 in the last quarter. Geode Capital Management LLC lifted its position in shares of Group 1 Automotive by 0.7% during the third quarter. Geode Capital Management LLC now owns 305,602 shares of the company’s stock valued at $117,080,000 after buying an additional 1,985 shares during the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of Group 1 Automotive by 2.3% in the 3rd quarter. Franklin Resources Inc. now owns 156,627 shares of the company’s stock valued at $55,701,000 after buying an additional 3,507 shares in the last quarter. 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.