Group 1 Automotive (NYSE:GPI) Hits New 12-Month Low – Here’s Why

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $327.00 and last traded at $327.5620, with a volume of 34912 shares changing hands. The stock had previously closed at $333.86.

Analyst Upgrades and Downgrades

GPI has been the topic of several recent research reports. JPMorgan Chase & Co. reduced their target price on shares of Group 1 Automotive from $410.00 to $370.00 and set a “neutral” rating on the stock in a report on Tuesday, February 10th. Benchmark reiterated a “hold” rating on shares of Group 1 Automotive in a research note on Friday, January 9th. Evercore initiated coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective for the company. Barclays set a $470.00 price target on Group 1 Automotive in a report on Monday, February 2nd. Finally, Morgan Stanley set a $460.00 price target on shares of Group 1 Automotive in a research note on Monday, December 8th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Group 1 Automotive currently has an average rating of “Moderate Buy” and a consensus price target of $466.57.

Group 1 Automotive Price Performance

The stock has a market capitalization of $4.17 billion, a price-to-earnings ratio of 13.19 and a beta of 0.90. The company has a quick ratio of 0.25, a current ratio of 1.06 and a debt-to-equity ratio of 1.06. The company’s 50-day simple moving average is $387.04 and its 200 day simple moving average is $415.23.

Group 1 Automotive (NYSE:GPI) last issued its quarterly earnings results on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). The business had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.71 billion. Group 1 Automotive had a return on equity of 17.00% and a net margin of 1.44%.The firm’s quarterly revenue was up .6% compared to the same quarter last year. During the same quarter last year, the firm earned $10.02 earnings per share. Equities research analysts forecast that Group 1 Automotive, Inc. will post 41 EPS for the current year.

Group 1 Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. This is an increase from Group 1 Automotive’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Monday, March 2nd. Group 1 Automotive’s payout ratio is currently 8.00%.

Group 1 Automotive declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 11th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 10.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Institutional Trading of Group 1 Automotive

Hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. increased its position in shares of Group 1 Automotive by 366,770.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 25,431,464 shares of the company’s stock worth $10,002,195,000 after acquiring an additional 25,424,532 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Group 1 Automotive by 3.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 678,316 shares of the company’s stock valued at $266,788,000 after purchasing an additional 25,209 shares during the period. State Street Corp lifted its holdings in shares of Group 1 Automotive by 1.5% in the fourth quarter. State Street Corp now owns 505,108 shares of the company’s stock valued at $198,659,000 after purchasing an additional 7,418 shares in the last quarter. Norges Bank acquired a new position in shares of Group 1 Automotive during the fourth quarter worth about $98,125,000. Finally, Victory Capital Management Inc. raised its position in Group 1 Automotive by 34.8% in the 3rd quarter. Victory Capital Management Inc. now owns 226,915 shares of the company’s stock valued at $99,278,000 after buying an additional 58,641 shares during the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

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.