Group 1 Automotive (NYSE:GPI) Stock Price Down 5.2% – What’s Next?

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price fell 5.2% during trading on Wednesday. The stock traded as low as $231.50 and last traded at $230.3640. Approximately 90,251 shares were traded during trading, a decline of 55% from the average daily volume of 199,157 shares. The stock had previously closed at $243.02.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Morgan Stanley cut Group 1 Automotive from an “equal weight” rating to an “underweight” rating and lowered their price target for the stock from $300.00 to $232.00 in a report on Monday, October 5th. Evercore set a $360.00 price objective on Group 1 Automotive in a report on Tuesday, August 4th. Benchmark reaffirmed a “buy” rating on shares of Group 1 Automotive in a report on Friday, July 10th. Citigroup decreased their target price on Group 1 Automotive from $387.00 to $357.00 and set a “buy” rating on the stock in a research report on Monday, September 28th. Finally, KeyCorp set a $425.00 target price on Group 1 Automotive in a report on Wednesday, October 7th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $341.67.

Group 1 Automotive Price Performance

The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02. The company has a 50-day moving average of $256.44 and a 200-day moving average of $296.11. The stock has a market capitalization of $2.85 billion, a price-to-earnings ratio of 9.94, a P/E/G ratio of 1.38 and a beta of 0.92.

Group 1 Automotive (NYSE:GPI) last announced its earnings results on Thursday, July 30th. The company reported $9.61 EPS for the quarter, missing analysts’ consensus estimates of $10.60 by ($0.99). Group 1 Automotive had a net margin of 1.31% and a return on equity of 15.66%. The company had revenue of $5.39 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same quarter last year, the company posted $10.82 EPS. Group 1 Automotive’s quarterly revenue was down 5.6% compared to the same quarter last year. As a group, equities research analysts expect that Group 1 Automotive, Inc. will post 37.68 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a dividend of $0.55 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. Group 1 Automotive’s dividend payout ratio (DPR) is presently 9.16%.

Insider Buying and Selling

In other news, major shareholder Conifer Management, L.L.C. bought 71,592 shares of the business’s stock in a transaction that occurred on Wednesday, September 30th. The stock was purchased at an average price of $242.03 per share, with a total value of $17,327,411.76. Following the purchase, the insider owned 1,912,290 shares of the company’s stock, valued at $462,831,548.70. This trade represents a 3.89% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. In the last three months, insiders bought 720,030 shares of company stock worth $187,264,264. Company insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

Several hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Group 1 Automotive during the second quarter valued at approximately $593,420,000. Conifer Management L.L.C. acquired a new position in Group 1 Automotive in the 2nd quarter valued at $281,561,390. Dimensional Fund Advisors LP boosted its holdings in shares of Group 1 Automotive by 1.5% during the first quarter. Dimensional Fund Advisors LP now owns 688,416 shares of the company’s stock worth $227,612,000 after purchasing an additional 10,100 shares during the last quarter. Lakewood Capital Management LP acquired a new stake in shares of Group 1 Automotive during the second quarter worth $72,098,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of Group 1 Automotive in the second quarter valued at $57,174,000. 99.92% of the stock is owned by institutional investors and hedge funds.

Group 1 Automotive Company Profile

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.