Group 1 Automotive (NYSE:GPI) Stock Gets Price Target Cut from UBS Group

Group 1 Automotive (NYSE:GPI) had its price target cut by UBS Group from $271.00 to $259.00 in a research note published on Thursday,Benzinga reports. They currently have a neutral rating on the stock.

A number of other research firms also recently issued reports on GPI. Weiss Ratings downgraded Group 1 Automotive from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, August 17th. Morgan Stanley downgraded Group 1 Automotive from an “equal weight” rating to an “underweight” rating and decreased their price objective for the company from $300.00 to $232.00 in a report on Monday, October 5th. DA Davidson set a $425.00 price objective on shares of Group 1 Automotive in a research note on Friday, July 10th. Evercore set a $360.00 price objective on shares of Group 1 Automotive in a research note on Tuesday, August 4th. Finally, Citigroup dropped their target price on shares of Group 1 Automotive from $387.00 to $357.00 and set a “buy” rating on the stock in a report on Monday, September 28th. Five research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $338.11.

Group 1 Automotive Stock Performance

Group 1 Automotive stock opened at $260.61 on Thursday. The company has a 50 day moving average price of $254.61 and a 200-day moving average price of $307.43. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02. Group 1 Automotive has a fifty-two week low of $224.65 and a fifty-two week high of $429.00. The company has a market capitalization of $3.11 billion, a PE ratio of 8.25, a P/E/G ratio of 1.61 and a beta of 0.92.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $9.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $9.50 by ($0.14). Group 1 Automotive had a net margin of 1.75% and a return on equity of 15.18%. The firm had revenue of $5.40 billion during the quarter, compared to analysts’ expectations of $5.58 billion. During the same quarter in the previous year, the firm posted $10.45 EPS. The firm’s revenue for the quarter was down 6.7% on a year-over-year basis. As a group, equities analysts forecast that Group 1 Automotive will post 37.40 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a $0.55 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $2.20 dividend on an annualized basis and a yield of 0.8%. Group 1 Automotive’s payout ratio is 6.96%.

Insiders Place Their Bets

In related news, major shareholder Conifer Management, L.L.C. bought 20,471 shares of the stock in a transaction on Monday, October 26th. The stock was bought at an average price of $246.14 per share, for a total transaction of $5,038,731.94. Following the completion of the acquisition, the insider directly owned 2,012,290 shares in the company, valued at approximately $495,305,060.60. This represents a 1.03% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, SVP Gillian A. Hobson sold 2,000 shares of the stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $258.24, for a total value of $516,480.00. Following the sale, the senior vice president directly owned 7,543 shares in the company, valued at $1,947,904.32. This trade represents a 20.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders purchased a total of 820,030 shares of company stock worth $211,496,571 over the last 90 days. Company insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

A number of institutional investors have recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC boosted its position in shares of Group 1 Automotive by 445.8% in the 3rd quarter. Salomon & Ludwin LLC now owns 131 shares of the company’s stock worth $31,000 after purchasing an additional 107 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in Group 1 Automotive during the 2nd quarter worth $42,000. Anchor Investment Management LLC increased its position in Group 1 Automotive by 112.0% during the 2nd quarter. Anchor Investment Management LLC now owns 212 shares of the company’s stock valued at $62,000 after buying an additional 112 shares in the last quarter. Allworth Financial LP acquired a new position in Group 1 Automotive during the 2nd quarter valued at about $75,000. Finally, Group One Trading LLC purchased a new stake in Group 1 Automotive in the second quarter valued at about $79,000. Institutional investors own 99.92% of the company’s stock.

Trending Headlines about Group 1 Automotive

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

• Positive Sentiment: Barclays lowered its price target from $320 to $300 but maintained an overweight rating, implying meaningful upside from recent levels. The revised target suggests the firm still expects Group 1 Automotive’s valuation and operating performance to improve. Barclays stock recommendation
• Positive Sentiment: Some investors are refocusing on GPI’s potentially undervalued profile after the earnings report. The company remains profitable and trades at a relatively low earnings multiple, which could support the stock if automotive demand and margins stabilize. Group 1 Automotive Q3 results
• Neutral Sentiment: UBS reduced its price target from $271 to $259 and retained a neutral rating, signaling limited near-term upside at the current valuation. UBS Group stock recommendation
• Neutral Sentiment: New disclosures about the stockholder agreement with Conifer highlight potential governance, capital-allocation and shareholder-activism risks. The agreement may influence future strategic decisions but does not yet represent a direct change to operations. Conifer stockholder agreement analysis
• Negative Sentiment: Third-quarter EPS of $9.36 missed the $9.50 consensus, while revenue of $5.40 billion fell short of expectations and declined 6.7% year over year. EPS also decreased from $10.45 in the prior-year quarter, reinforcing concerns about slowing sales and profitability. Group 1 Automotive Q3 results and margins
• Negative Sentiment: Director Steven Mizell sold 550 shares for approximately $143,286, leaving him with only 33 shares. Separately, SVP Gillian Hobson sold 2,000 shares worth about $516,480, reducing her holdings by roughly 21%. The sales may weigh on sentiment, although they do not necessarily indicate deteriorating fundamentals. Group 1 Automotive insider sale filing

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.

In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.

Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.