Group 1 Automotive, Inc. (NYSE:GPI) Receives $437.67 Average Price Target from Analysts

Shares of Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) have earned an average recommendation of "Moderate Buy" from the six brokerages that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $437.67.

A number of research firms have recently issued reports on GPI. Morgan Stanley upgraded shares of Group 1 Automotive from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $285.00 to $430.00 in a research note on Wednesday, September 25th. Jefferies Financial Group assumed coverage on shares of Group 1 Automotive in a research report on Friday, December 13th. They set a "buy" rating and a $500.00 price target on the stock. JPMorgan Chase & Co. raised their price target on shares of Group 1 Automotive from $420.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, November 5th. StockNews.com raised shares of Group 1 Automotive from a "sell" rating to a "hold" rating in a report on Friday, November 8th. Finally, Guggenheim raised their target price on shares of Group 1 Automotive from $420.00 to $442.00 and gave the company a "buy" rating in a report on Thursday, November 21st.

Group 1 Automotive Stock Performance

Shares of NYSE GPI traded up $7.20 during mid-day trading on Monday, reaching $428.10. 100,904 shares of the company were exchanged, compared to its average volume of 110,515. The company's 50-day simple moving average is $417.99 and its 200-day simple moving average is $371.70. 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 stock has a market capitalization of $5.70 billion, a P/E ratio of 11.41 and a beta of 1.36. Group 1 Automotive has a twelve month low of $255.73 and a twelve month high of $440.32.

Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $9.87 by $0.03. The company had revenue of $5.22 billion during the quarter, compared to analysts' expectations of $5.06 billion. Group 1 Automotive had a net margin of 2.68% and a return on equity of 18.49%. Group 1 Automotive's quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter last year, the company posted $12.07 EPS. As a group, research analysts predict that Group 1 Automotive will post 38.37 earnings per share for the current year.

Group 1 Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 2nd were issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 0.44%. The ex-dividend date was Monday, December 2nd. Group 1 Automotive's dividend payout ratio (DPR) is presently 5.01%.

Group 1 Automotive announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 12th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 9.3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Activity at Group 1 Automotive

In related news, Director Lincoln Pereira sold 6,000 shares of Group 1 Automotive stock in a transaction that occurred on 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 sale, the director now directly owns 98,467 shares in the company, valued at $42,013,899.56. This trade represents a 5.74 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Edward Mckissic sold 79 shares of Group 1 Automotive 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 sale, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. This represents a 1.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Group 1 Automotive

Hedge funds have recently added to or reduced their stakes in the business. Commonwealth Equity Services LLC acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth approximately $231,000. Victory Capital Management Inc. lifted its position in shares of Group 1 Automotive by 12.9% in the 2nd quarter. Victory Capital Management Inc. now owns 32,682 shares of the company's stock worth $9,716,000 after purchasing an additional 3,734 shares during the period. Choreo LLC acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth approximately $228,000. Headlands Technologies LLC acquired a new position in shares of Group 1 Automotive in the 2nd quarter worth approximately $48,000. Finally, American Century Companies Inc. lifted its position in shares of Group 1 Automotive by 35.0% in the 2nd quarter. American Century Companies Inc. now owns 1,654 shares of the company's stock worth $492,000 after purchasing an additional 429 shares during the period. 99.92% of the stock is currently owned by institutional investors and hedge funds.

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.