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

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $471.69 and last traded at $471.97, with a volume of 43326 shares trading hands. The stock had previously closed at $458.32.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Stephens restated an “equal weight” rating and set a $460.00 target price on shares of Group 1 Automotive in a research report on Thursday, January 30th. StockNews.com upgraded shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. JPMorgan Chase & Co. dropped their price target on shares of Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Guggenheim raised their price target 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, Jefferies Financial Group began coverage on shares of Group 1 Automotive in a research report on Friday, December 13th. They set a “buy” rating and a $500.00 price target on the stock. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, Group 1 Automotive has an average rating of “Moderate Buy” and an average price target of $447.83.

Group 1 Automotive Trading Up 3.1 %

The stock has a market capitalization of $6.29 billion, a price-to-earnings ratio of 12.86 and a beta of 1.36. The company’s 50-day moving average is $432.15 and its 200-day moving average is $389.98. The company has a quick ratio of 0.24, a current ratio of 1.00 and a debt-to-equity ratio of 0.91.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Wednesday, January 29th. The company reported $10.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.77 by $1.25. Group 1 Automotive had a net margin of 2.47% and a return on equity of 18.25%. Research analysts anticipate that Group 1 Automotive, Inc. will post 40.59 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were given a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.40%. The ex-dividend date was Monday, December 2nd. Group 1 Automotive’s dividend payout ratio is presently 5.12%.

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

Insider Activity at Group 1 Automotive

In related news, Director Lincoln Pereira sold 6,000 shares of the firm’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 sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 1.70% of the company’s stock.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently made changes to their positions in GPI. R Squared Ltd acquired a new position in Group 1 Automotive during the 4th quarter worth approximately $30,000. Assetmark Inc. increased its position in Group 1 Automotive by 51.9% during the 3rd quarter. Assetmark Inc. now owns 82 shares of the company’s stock worth $31,000 after purchasing an additional 28 shares during the period. Harbor Capital Advisors Inc. acquired a new position in Group 1 Automotive during the 3rd quarter worth approximately $36,000. Avior Wealth Management LLC acquired a new stake in shares of Group 1 Automotive in the 3rd quarter worth approximately $46,000. Finally, GAMMA Investing LLC grew its holdings in shares of Group 1 Automotive by 70.4% in the 4th quarter. GAMMA Investing LLC now owns 121 shares of the company’s stock worth $51,000 after acquiring an additional 50 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.