Group 1 Automotive, Inc. (NYSE:GPI) Raises Dividend to $0.50 Per Share

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) announced a quarterly dividend on Wednesday, February 12th,RTT News reports. Shareholders of record on Monday, March 3rd will be given a dividend of 0.50 per share on Monday, March 17th. This represents a $2.00 dividend on an annualized basis and a yield of 0.42%. The ex-dividend date of this dividend is Monday, March 3rd. This is an increase from Group 1 Automotive's previous quarterly dividend of $0.47.

Group 1 Automotive has increased its dividend by an average of 12.2% annually over the last three years. Group 1 Automotive has a dividend payout ratio of 4.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Group 1 Automotive to earn $44.53 per share next year, which means the company should continue to be able to cover its $1.88 annual dividend with an expected future payout ratio of 4.2%.

Group 1 Automotive Stock Performance

Shares of Group 1 Automotive stock traded down $2.44 during trading on Friday, hitting $481.64. 85,448 shares of the stock were exchanged, compared to its average volume of 133,676. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.24 and a current ratio of 1.00. Group 1 Automotive has a 12 month low of $258.77 and a 12 month high of $490.09. The stock's fifty day moving average is $439.20 and its 200 day moving average is $397.90. The stock has a market cap of $6.42 billion, a PE ratio of 13.11 and a beta of 1.36.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Wednesday, January 29th. The company reported $10.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $8.77 by $1.25. Group 1 Automotive had a net margin of 2.47% and a return on equity of 18.25%. As a group, sell-side analysts anticipate that Group 1 Automotive will post 40.86 EPS for the current year.

Analysts Set New Price Targets

Several analysts have weighed in on GPI shares. Stephens reaffirmed an "equal weight" rating and set a $460.00 target price on shares of Group 1 Automotive in a research note on Thursday, January 30th. Guggenheim lifted their price objective on shares of Group 1 Automotive from $420.00 to $442.00 and gave the company a "buy" rating in a research note on Thursday, November 21st. Jefferies Financial Group assumed coverage on shares of Group 1 Automotive in a report on Friday, December 13th. They issued a "buy" rating and a $500.00 price objective for the company. JPMorgan Chase & Co. raised their target price on shares of Group 1 Automotive from $420.00 to $495.00 and gave the company an "overweight" rating in a research note on Friday. 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 five have given a buy rating to the company's stock. According to data from MarketBeat, Group 1 Automotive currently has an average rating of "Moderate Buy" and an average target price of $460.33.

Group 1 Automotive declared that its Board of Directors has initiated a share repurchase program on Tuesday, November 12th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 9.3% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Group 1 Automotive

In other news, Director Lincoln Pereira sold 6,000 shares of the firm's stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $426.68, for a total transaction of $2,560,080.00. Following the completion of the transaction, the director now owns 98,467 shares in the company, valued at approximately $42,013,899.56. This trade represents a 5.74 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.70% of the company's stock.

Group 1 Automotive Company Profile

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.