Group 1 Automotive (NYSE:GPI) to Repurchase $500.00 million in Outstanding Shares

Group 1 Automotive (NYSE:GPI) announced that its Board of Directors has authorized a stock repurchase program on Tuesday, November 12th, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 9.3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Group 1 Automotive Stock Down 1.5 %

Group 1 Automotive stock opened at $411.23 on Friday. The business has a fifty day moving average price of $370.72 and a 200-day moving average price of $337.59. Group 1 Automotive has a 1-year low of $255.73 and a 1-year high of $422.28. The stock has a market capitalization of $5.48 billion, a price-to-earnings ratio of 10.96, a PEG ratio of 2.09 and a beta of 1.33. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.00 and a quick ratio of 0.24.

Group 1 Automotive (NYSE:GPI) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share for the quarter, topping analysts’ consensus estimates of $9.87 by $0.03. The business had revenue of $5.22 billion for the quarter, compared to analyst estimates of $5.06 billion. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. The company’s revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $12.07 earnings per share. Equities research analysts forecast that Group 1 Automotive will post 38.6 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be issued a $0.47 dividend. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.46%. Group 1 Automotive’s dividend payout ratio is currently 5.01%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on GPI shares. Stephens started coverage on shares of Group 1 Automotive in a report on Thursday, September 12th. They set an “equal weight” rating and a $394.00 price objective on the stock. Morgan Stanley upgraded Group 1 Automotive from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $285.00 to $430.00 in a report on Wednesday, September 25th. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. JPMorgan Chase & Co. lifted their target price on Group 1 Automotive from $420.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, November 5th. Finally, Bank of America decreased their price target on shares of Group 1 Automotive from $445.00 to $435.00 and set a “buy” rating for the company in a research report on Monday, July 22nd. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, Group 1 Automotive presently has an average rating of “Moderate Buy” and a consensus price target of $397.80.

Insider Transactions at Group 1 Automotive

In other Group 1 Automotive news, VP Edward Mckissic sold 79 shares of the stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total transaction of $29,546.79. Following the transaction, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. This represents a 1.25 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.70% of the company’s stock.

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.