Group 1 Automotive (NYSE:GPI) Reaches New 12-Month High Following Dividend Announcement

Shares of Group 1 Automotive, Inc. (NYSE:GPI) hit a new 52-week high on Tuesday following a dividend announcement from the company. The stock traded as high as $416.35 and last traded at $416.14, with a volume of 1969 shares trading hands. The stock had previously closed at $412.67.

The newly announced dividend which will be paid on Monday, December 16th. Investors 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 currently 5.01%.

Analyst Ratings Changes

A number of brokerages have weighed in on GPI. JPMorgan Chase & Co. raised their target price on shares of Group 1 Automotive from $420.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, November 5th. StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Bank of America lowered their price target on 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. Stephens initiated coverage on shares of 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. Finally, Morgan Stanley upgraded shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $285.00 to $430.00 in a research note on Wednesday, September 25th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, Group 1 Automotive has an average rating of “Moderate Buy” and an average price target of $397.80.

Group 1 Automotive Price Performance

The firm has a fifty day moving average of $369.76 and a 200 day moving average of $337.08. 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 company has a market capitalization of $5.56 billion, a P/E ratio of 11.13, a P/E/G ratio of 2.09 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 EPS 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 net margin of 2.68% and a return on equity of 18.49%. The business’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same period in the previous year, the business posted $12.07 earnings per share. On average, equities research analysts anticipate that Group 1 Automotive, Inc. will post 38.6 EPS for the current year.

Group 1 Automotive announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 12th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 9.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Insider Activity

In related news, VP Edward Mckissic sold 79 shares of the company’s stock in a transaction 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 completion of the sale, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.70% of the company’s stock.

Institutional Trading of Group 1 Automotive

Several large investors have recently added to or reduced their stakes in the business. Assetmark Inc. boosted its stake in shares of Group 1 Automotive by 51.9% during the 3rd quarter. Assetmark Inc. now owns 82 shares of the company’s stock worth $31,000 after acquiring an additional 28 shares during the last quarter. Arizona State Retirement System lifted its position in Group 1 Automotive by 0.9% during the second quarter. Arizona State Retirement System now owns 3,832 shares of the company’s stock valued at $1,139,000 after purchasing an additional 33 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Group 1 Automotive by 17.1% during the second quarter. EverSource Wealth Advisors LLC now owns 267 shares of the company’s stock valued at $79,000 after purchasing an additional 39 shares during the period. SummerHaven Investment Management LLC increased its position in Group 1 Automotive by 1.7% in the second quarter. SummerHaven Investment Management LLC now owns 2,854 shares of the company’s stock worth $848,000 after buying an additional 49 shares in the last quarter. Finally, Hexagon Capital Partners LLC raised its stake in shares of Group 1 Automotive by 53.7% in the second quarter. Hexagon Capital Partners LLC now owns 146 shares of the company’s stock worth $43,000 after buying an additional 51 shares during the period. 99.92% of the stock is currently owned by institutional investors.

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.