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

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week high during trading on Monday . The company traded as high as $458.00 and last traded at $454.33, with a volume of 12050 shares trading hands. The stock had previously closed at $449.57.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Guggenheim increased their price objective on shares of Group 1 Automotive from $420.00 to $442.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. JPMorgan Chase & Co. decreased their price objective on shares of Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating on the stock in a research note on Friday, January 17th. StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a report on Friday, November 8th. Finally, Jefferies Financial Group initiated coverage on Group 1 Automotive in a report on Friday, December 13th. They set a “buy” rating and a $500.00 price target for the company. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $436.83.

Group 1 Automotive Stock Performance

The company has a market cap of $6.09 billion, a price-to-earnings ratio of 12.19 and a beta of 1.36. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.24 and a current ratio of 1.00. The company has a fifty day moving average of $428.60 and a two-hundred day moving average of $384.80.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Wednesday, January 29th. The company reported $10.02 EPS for the quarter, beating analysts’ consensus estimates of $8.77 by $1.25. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. Equities research analysts anticipate that Group 1 Automotive, Inc. will post 38.29 EPS for the current year.

Group 1 Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 0.41%. The ex-dividend date was Monday, December 2nd. Group 1 Automotive’s payout ratio is currently 5.01%.

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

Insider Buying and Selling

In other news, Director Lincoln Pereira sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $426.68, for a total value 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 transaction, the vice president now directly owns 6,259 shares of the company’s stock, valued at approximately $2,340,928.59. This trade represents a 1.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Group 1 Automotive

Institutional investors have recently added to or reduced their stakes in the business. Savant Capital LLC grew its stake in shares of Group 1 Automotive by 8.2% in the 4th quarter. Savant Capital LLC now owns 622 shares of the company’s stock valued at $262,000 after buying an additional 47 shares during the period. Wilmington Savings Fund Society FSB acquired a new stake in Group 1 Automotive in the fourth quarter valued at approximately $66,000. Tectonic Advisors LLC bought a new stake in shares of Group 1 Automotive during the fourth quarter valued at approximately $522,000. Hodges Capital Management Inc. raised its position in shares of Group 1 Automotive by 67.7% during the fourth quarter. Hodges Capital Management Inc. now owns 36,821 shares of the company’s stock worth $15,520,000 after purchasing an additional 14,861 shares during the period. Finally, Financial Strategies Group Inc. lifted its holdings in shares of Group 1 Automotive by 13.6% in the 4th quarter. Financial Strategies Group Inc. now owns 1,462 shares of the company’s stock worth $615,000 after purchasing an additional 175 shares in the last quarter. 99.92% of the stock is owned by institutional investors and hedge funds.

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.