Group 1 Automotive, Inc. (NYSE:GPI) Stock Has Consensus Price Target of $341.67 According to Analysts

Group 1 Automotive, Inc. (NYSE:GPI) has earned a consensus recommendation of “Hold” from the ten research firms that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $338.11.

Several analysts have commented on GPI shares. UBS Group lowered their price target on Group 1 Automotive from $271.00 to $259.00 and set a “neutral” rating for the company in a report on Thursday. KeyCorp set a $425.00 price objective on shares of Group 1 Automotive in a report on Wednesday, October 7th. DA Davidson set a $425.00 target price on shares of Group 1 Automotive in a research report on Friday, July 10th. Barclays lowered their target price on shares of Group 1 Automotive from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Friday. Finally, Seaport Research Partners set a $420.00 price target on shares of Group 1 Automotive in a research note on Monday, August 3rd.

Group 1 Automotive News Roundup

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

Insider Transactions at Group 1 Automotive

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

Hedge Funds Weigh In On Group 1 Automotive

A number of large investors have recently modified their holdings of the company. Salomon & Ludwin LLC grew its stake in Group 1 Automotive by 445.8% during the third quarter. Salomon & Ludwin LLC now owns 131 shares of the company’s stock worth $31,000 after buying an additional 107 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in shares of Group 1 Automotive in the second quarter worth $42,000. Anchor Investment Management LLC raised its stake in shares of Group 1 Automotive by 112.0% in the 2nd quarter. Anchor Investment Management LLC now owns 212 shares of the company’s stock valued at $62,000 after acquiring an additional 112 shares during the period. Allworth Financial LP purchased a new position in shares of Group 1 Automotive in the 2nd quarter valued at $75,000. Finally, Group One Trading LLC acquired a new position in shares of Group 1 Automotive during the 2nd quarter valued at $79,000. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

Group 1 Automotive Price Performance

GPI stock opened at $260.61 on Friday. The stock has a market capitalization of $3.11 billion, a price-to-earnings ratio of 8.25, a price-to-earnings-growth ratio of 1.61 and a beta of 0.92. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. Group 1 Automotive has a 52-week low of $224.65 and a 52-week high of $429.00. The stock’s fifty day simple moving average is $254.61 and its 200-day simple moving average is $307.43.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Wednesday, October 28th. The company reported $9.36 EPS for the quarter, missing the consensus estimate 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 business had revenue of $5.40 billion during the quarter, compared to analyst estimates of $5.58 billion. During the same quarter in the previous year, the company posted $10.45 earnings per share. The business’s revenue for the quarter was down 6.7% compared to the same quarter last year. Equities research analysts expect that Group 1 Automotive will post 37.40 EPS for the current year.

Group 1 Automotive Announces Dividend

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

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.