Group 1 Automotive (NYSE:GPI) Stock Price Up 6.4% – Should You Buy?

Group 1 Automotive, Inc. (NYSE:GPI)’s share price was up 6.4% during mid-day trading on Wednesday . The company traded as high as $319.34 and last traded at $318.3640. Approximately 111,197 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 181,363 shares. The stock had previously closed at $299.18.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. JPMorgan Chase & Co. decreased their target price on shares of Group 1 Automotive from $390.00 to $380.00 and set an “overweight” rating on the stock in a report on Monday. Benchmark reaffirmed a “buy” rating on shares of Group 1 Automotive in a report on Friday, July 10th. UBS Group dropped their price objective on Group 1 Automotive from $338.00 to $330.00 and set a “neutral” rating for the company in a research note on Friday, July 10th. DA Davidson set a $425.00 target price on Group 1 Automotive in a research report on Friday, July 10th. Finally, Barclays lowered their price target on Group 1 Automotive from $470.00 to $435.00 and set an “overweight” rating on the stock in a report on Wednesday. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Group 1 Automotive presently has a consensus rating of “Moderate Buy” and a consensus target price of $426.89.

Group 1 Automotive Price Performance

The firm’s 50-day moving average is $315.35 and its 200-day moving average is $337.79. The company has a quick ratio of 0.21, a current ratio of 0.95 and a debt-to-equity ratio of 1.00. The company has a market capitalization of $3.79 billion, a PE ratio of 12.17, a price-to-earnings-growth ratio of 0.78 and a beta of 0.83.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings data on Thursday, April 30th. The company reported $8.66 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $8.82 by ($0.16). The firm had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.42 billion. Group 1 Automotive had a return on equity of 16.63% and a net margin of 1.46%.Group 1 Automotive’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $10.17 earnings per share. Equities analysts predict that Group 1 Automotive, Inc. will post 41.93 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a dividend of $0.55 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. Group 1 Automotive’s dividend payout ratio (DPR) is 8.40%.

Hedge Funds Weigh In On Group 1 Automotive

A number of large investors have recently added to or reduced their stakes in GPI. Signaturefd LLC boosted its position in Group 1 Automotive by 54.9% during the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock valued at $31,000 after buying an additional 28 shares during the period. First Horizon Corp boosted its holdings in Group 1 Automotive by 881.8% during the 4th quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after acquiring an additional 97 shares during the period. Torren Management LLC bought a new position in Group 1 Automotive during the 4th quarter worth approximately $43,000. Assetmark Inc. increased its stake in Group 1 Automotive by 40.5% in the 4th quarter. Assetmark Inc. now owns 118 shares of the company’s stock worth $46,000 after purchasing an additional 34 shares during the period. Finally, Johnson Financial Group Inc. bought a new stake in Group 1 Automotive in the third quarter valued at approximately $55,000. Hedge funds and other institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc (NYSE: GPI) is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.