Group 1 Automotive (NYSE:GPI) Board of Directors Declares Stock Repurchase Plan

Group 1 Automotive (NYSE:GPI) declared that its board has approved a share buyback program on Tuesday, November 12th, RTT News reports. The company plans to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 9.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

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

Group 1 Automotive Price Performance

GPI opened at $405.88 on Wednesday. The stock’s 50 day moving average price is $368.70 and its 200-day moving average price is $336.51. Group 1 Automotive has a 52-week low of $255.73 and a 52-week high of $417.98. The stock has a market capitalization of $5.41 billion, a PE ratio of 10.81, a price-to-earnings-growth ratio of 2.07 and a beta of 1.33. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.26 and a current ratio of 1.00.

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

Group 1 Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be given a $0.47 dividend. 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%.

Insider Activity at Group 1 Automotive

In related news, VP Edward Mckissic sold 79 shares of Group 1 Automotive stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $374.01, for a total transaction of $29,546.79. Following the completion of the sale, the vice president now owns 6,259 shares in the company, valued at $2,340,928.59. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, VP Edward Mckissic sold 79 shares of the firm’s stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total value of $29,546.79. Following the completion of the transaction, the vice president now owns 6,259 shares in the company, valued at $2,340,928.59. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Michael David Jones sold 1,200 shares of Group 1 Automotive stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $350.99, for a total value of $421,188.00. Following the transaction, the vice president now owns 9,742 shares of the company’s stock, valued at $3,419,344.58. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by insiders.

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.