Group 1 Automotive, Inc. (NYSE:GPI) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Group 1 Automotive, Inc. (NYSE:GPI) have earned an average recommendation of “Moderate Buy” from the five brokerages that are presently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $425.20.

A number of equities analysts have commented on GPI shares. Stephens initiated coverage on shares of Group 1 Automotive in a research report on Thursday, September 12th. They issued an “equal weight” rating and a $394.00 price target on the stock. JPMorgan Chase & Co. boosted their target price on Group 1 Automotive from $420.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, November 5th. Guggenheim raised their price target on Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a report on Thursday. StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Finally, Morgan Stanley upgraded Group 1 Automotive from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $285.00 to $430.00 in a research note on Wednesday, September 25th.

Group 1 Automotive Stock Up 3.1 %

NYSE GPI opened at $421.14 on Friday. Group 1 Automotive has a 1-year low of $255.73 and a 1-year high of $422.92. The company has a current ratio of 1.00, a quick ratio of 0.24 and a debt-to-equity ratio of 0.91. The stock’s 50 day moving average is $377.50 and its two-hundred day moving average is $342.27. The company has a market capitalization of $5.61 billion, a price-to-earnings ratio of 11.22 and a beta of 1.33.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share for the quarter, beating analysts’ consensus estimates of $9.87 by $0.03. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. The firm had revenue of $5.22 billion for the quarter, compared to analysts’ expectations of $5.06 billion. During the same period in the prior year, the business posted $12.07 earnings per share. The business’s revenue was up 11.0% compared to the same quarter last year. Equities analysts forecast that Group 1 Automotive will post 38.37 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a $0.47 dividend. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $1.88 annualized dividend and a dividend yield of 0.45%. Group 1 Automotive’s dividend payout ratio (DPR) is currently 5.01%.

Group 1 Automotive declared that its board has initiated a stock repurchase plan on Tuesday, November 12th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 9.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, VP Edward Mckissic sold 79 shares of the firm’s stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $374.01, for a total value of $29,546.79. Following the transaction, the vice president now owns 6,259 shares of the company’s stock, valued at approximately $2,340,928.59. This trade represents a 1.25 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.70% of the company’s stock.

Hedge Funds Weigh In On Group 1 Automotive

Large investors have recently bought and sold shares of the business. The Manufacturers Life Insurance Company raised its position in shares of Group 1 Automotive by 22.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 639,142 shares of the company’s stock valued at $190,004,000 after acquiring an additional 115,143 shares during the last quarter. State Street Corp increased its holdings in Group 1 Automotive by 2.1% in the third quarter. State Street Corp now owns 541,766 shares of the company’s stock valued at $207,518,000 after purchasing an additional 10,969 shares during the last quarter. FMR LLC lifted its stake in Group 1 Automotive by 133.0% in the third quarter. FMR LLC now owns 407,930 shares of the company’s stock valued at $156,253,000 after buying an additional 232,846 shares during the period. Geode Capital Management LLC boosted its holdings in Group 1 Automotive by 0.7% during the third quarter. Geode Capital Management LLC now owns 305,602 shares of the company’s stock worth $117,080,000 after buying an additional 1,985 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Group 1 Automotive by 1.1% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 152,923 shares of the company’s stock worth $58,576,000 after buying an additional 1,735 shares during the period. 99.92% of the stock is currently owned by institutional investors and hedge funds.

About Group 1 Automotive

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.