Group 1 Automotive (NYSE:GPI) Reaches New 52-Week High on Analyst Upgrade

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week high during mid-day trading 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 analysts have also weighed in on the stock. Stephens began 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 for the company. Morgan Stanley raised shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $285.00 to $430.00 in a research note on Wednesday, September 25th. JPMorgan Chase & Co. raised their price objective 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. Finally, StockNews.com raised shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. 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 MarketBeat.com, Group 1 Automotive has a consensus rating of “Moderate Buy” and a consensus target price of $425.20.

Insider Activity

In related news, VP Edward Mckissic sold 79 shares of the firm’s 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 completion of the sale, the vice president now owns 6,259 shares of the company’s stock, valued at $2,340,928.59. This trade represents a 1.25 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

A number of hedge funds have recently added to or reduced their stakes in GPI. Assetmark Inc. lifted its holdings in Group 1 Automotive by 51.9% during the third quarter. Assetmark Inc. now owns 82 shares of the company’s stock worth $31,000 after acquiring an additional 28 shares during the period. Harbor Capital Advisors Inc. bought a new stake in Group 1 Automotive during the third quarter worth $36,000. Hexagon Capital Partners LLC lifted its holdings in Group 1 Automotive by 53.7% during the second quarter. Hexagon Capital Partners LLC now owns 146 shares of the company’s stock worth $43,000 after acquiring an additional 51 shares during the period. Avior Wealth Management LLC bought a new stake in Group 1 Automotive during the third quarter worth $46,000. Finally, Headlands Technologies LLC bought a new stake in Group 1 Automotive during the second quarter worth $48,000. Institutional investors and hedge funds own 99.92% of the company’s stock.

Group 1 Automotive Stock Up 3.0 %

The stock has a fifty day moving average of $376.37 and a 200 day moving average of $341.43. The firm has a market capitalization of $5.60 billion, a P/E ratio of 11.19 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 announced its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $5.22 billion during the quarter, compared to analysts’ expectations of $5.06 billion. During the same period in the previous year, the business earned $12.07 earnings per share. The firm’s quarterly revenue was up 11.0% compared to the same quarter last year. On average, research analysts anticipate that Group 1 Automotive, Inc. will post 38.52 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently declared 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. This represents a $1.88 dividend on an annualized basis and a yield of 0.45%. The ex-dividend date is Monday, December 2nd. Group 1 Automotive’s payout ratio is 5.01%.

Group 1 Automotive declared that its board has authorized a share repurchase program on Tuesday, November 12th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to buy up to 9.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board believes its shares are 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.