Group 1 Automotive (NYSE:GPI) Reaches New 12-Month High on Analyst Upgrade

Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week high on Friday after Guggenheim raised their price target on the stock from $420.00 to $442.00. Guggenheim currently has a buy rating on the stock. Group 1 Automotive traded as high as $422.92 and last traded at $420.76, with a volume of 37689 shares trading hands. The stock had previously closed at $408.66.

Several other equities research analysts have also weighed in on GPI. 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 research report on Wednesday, September 25th. Stephens began coverage on Group 1 Automotive in a research note on Thursday, September 12th. They set an “equal weight” rating and a $394.00 price objective for the company. JPMorgan Chase & Co. lifted their price objective 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, StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $425.20.

Insider Buying and Selling

In related news, VP Edward Mckissic sold 79 shares of Group 1 Automotive 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 sale, the vice president now owns 6,259 shares of the company’s stock, valued at $2,340,928.59. The trade was a 1.25 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 1.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Group 1 Automotive

Large investors have recently modified their holdings of the company. Dynamic Advisor Solutions LLC bought a new stake in Group 1 Automotive during the second quarter valued at about $452,000. The Manufacturers Life Insurance Company grew its holdings in Group 1 Automotive by 22.0% during the second quarter. The Manufacturers Life Insurance Company now owns 639,142 shares of the company’s stock valued at $190,004,000 after purchasing an additional 115,143 shares during the period. Raymond James & Associates grew its holdings in Group 1 Automotive by 8.3% during the second quarter. Raymond James & Associates now owns 40,541 shares of the company’s stock valued at $12,052,000 after purchasing an additional 3,095 shares during the period. B. Metzler seel. Sohn & Co. Holding AG bought a new stake in Group 1 Automotive during the third quarter valued at about $3,286,000. Finally, Susquehanna Fundamental Investments LLC grew its holdings in Group 1 Automotive by 327.0% during the second quarter. Susquehanna Fundamental Investments LLC now owns 15,459 shares of the company’s stock valued at $4,596,000 after purchasing an additional 11,839 shares during the period. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Stock Up 3.1 %

The firm has a market cap of $5.61 billion, a P/E ratio of 11.21 and a beta of 1.33. The company has a quick ratio of 0.24, a current ratio of 1.00 and a debt-to-equity ratio of 0.91. The company has a fifty day simple moving average of $376.37 and a 200-day simple moving average of $341.43.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data 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 firm had revenue of $5.22 billion during 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 business’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $12.07 earnings per share. On average, equities analysts anticipate that Group 1 Automotive, Inc. will post 38.52 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be given a dividend of $0.47 per share. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $1.88 dividend on an annualized basis and a yield of 0.45%. Group 1 Automotive’s dividend payout ratio (DPR) is presently 5.01%.

Group 1 Automotive announced that its Board of Directors has authorized a stock repurchase program on Tuesday, November 12th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 9.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

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.