Group 1 Automotive (NYSE:GPI) Hits New 12-Month Low Following Weak Earnings

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price hit a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $276.81 and last traded at $275.66, with a volume of 65502 shares changing hands. The stock had previously closed at $296.71.

The company reported $9.61 earnings per share for the quarter, missing analysts’ consensus estimates of $10.60 by ($0.99). The business had revenue of $5.39 billion for the quarter, compared to the consensus estimate of $5.66 billion. Group 1 Automotive had a net margin of 1.46% and a return on equity of 16.63%. The business’s quarterly revenue was down 5.6% on a year-over-year basis. During the same period last year, the firm posted $10.82 EPS.

Group 1 Automotive Announces Dividend

The business also recently announced 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 yield of 0.8%. Group 1 Automotive’s dividend payout ratio (DPR) is presently 8.40%.

More Group 1 Automotive News

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Group 1 agreed to acquire 10 Hennessy Automobile Companies dealerships and related real estate in the Atlanta market. The transaction is expected to add approximately $1.7 billion in annualized revenue and be immediately accretive to earnings per share after closing, strengthening the company’s regional “cluster” strategy. Group 1 Agrees to Acquire Hennessy Automobile Dealerships
• Positive Sentiment: The company said it completed a $50 million annualized U.S. expense-reduction initiative. This could help offset weaker demand and support margins, although the quarter’s results suggest cost savings have not fully countered operating pressure. Group 1 Automotive Q2 Revenue Falls to $5.4 Billion
• Neutral Sentiment: Management’s earnings presentation and call focused on the Hennessy transaction, the company’s dealership-cluster strategy, cost reductions and current market conditions. Investors will likely look for evidence that the acquisition can deliver its projected earnings contribution without increasing financial risk. Group 1 Automotive 2026 Q2 Results Presentation
• Negative Sentiment: Adjusted earnings were $9.61 per share, below the $10.60–$10.79 analyst consensus and down from $11.52 a year earlier. Reported revenue of $5.39 billion also missed the $5.66 billion estimate and declined 5.6% year over year. Group 1 Automotive Q2 Earnings and Revenues Miss Estimates
• Negative Sentiment: Net income from continuing operations fell to $103.0 million from $139.8 million, while diluted continuing-operations EPS declined to $8.62 from $10.77. The weaker performance was attributed to softer consumer spending, raising concerns about demand for vehicle sales and dealership services. Group 1 Automotive Misses Second-Quarter Estimates

Analyst Ratings Changes

Several research firms have recently issued reports on GPI. Benchmark reiterated a “buy” rating on shares of Group 1 Automotive in a report on Friday, July 10th. UBS Group cut their target price on Group 1 Automotive from $338.00 to $330.00 and set a “neutral” rating for the company in a research report on Friday, July 10th. Barclays decreased their price target on Group 1 Automotive from $470.00 to $435.00 and set an “overweight” rating for the company in a research note on Wednesday, July 15th. Evercore set a $440.00 price target on Group 1 Automotive in a research report on Tuesday, July 7th. Finally, Citigroup upped their price objective on Group 1 Automotive from $420.00 to $462.00 and gave the company a “buy” rating in a report on Monday, May 11th. Seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Group 1 Automotive currently has a consensus rating of “Moderate Buy” and an average price target of $426.89.

Institutional Trading of Group 1 Automotive

Large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. grew its position in Group 1 Automotive by 366,770.5% in 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 buying an additional 25,424,532 shares during the last quarter. Norges Bank acquired a new stake in shares of Group 1 Automotive during the 4th quarter valued at $98,125,000. Franklin Resources Inc. boosted its stake in shares of Group 1 Automotive by 968.8% during the 3rd quarter. Franklin Resources Inc. now owns 84,412 shares of the company’s stock worth $36,931,000 after acquiring an additional 76,514 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its stake in shares of Group 1 Automotive by 2,053.8% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 51,972 shares of the company’s stock worth $20,403,000 after acquiring an additional 49,559 shares in the last quarter. Finally, Man Group plc acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth $17,959,000. 99.92% of the stock is currently owned by institutional investors.

Group 1 Automotive Stock Down 7.2%

The stock has a fifty day moving average of $314.34 and a 200-day moving average of $331.68. The firm has a market capitalization of $3.28 billion, a price-to-earnings ratio of 10.55, a PEG ratio of 0.95 and a beta of 0.83. The company has a current ratio of 0.95, a quick ratio of 0.21 and a debt-to-equity ratio of 1.00.

About Group 1 Automotive

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.