Group 1 Automotive (NYSE:GPI) Reaches New 1-Year High - Still a Buy?

Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $447.73 and last traded at $447.73, with a volume of 1683 shares. The stock had previously closed at $436.22.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on GPI shares. StockNews.com upgraded Group 1 Automotive from a "sell" rating to a "hold" rating in a research note on Friday, November 8th. JPMorgan Chase & Co. raised their price objective on shares of Group 1 Automotive from $420.00 to $425.00 and gave the stock an "overweight" rating in a research note on Tuesday, November 5th. Morgan Stanley raised 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 report on Wednesday, September 25th. Jefferies Financial Group started coverage on shares of Group 1 Automotive in a research note on Friday, December 13th. They set a "buy" rating and a $500.00 target price on the stock. Finally, Guggenheim increased their price target 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. 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, the stock currently has an average rating of "Moderate Buy" and an average price target of $437.67.

Group 1 Automotive Stock Up 2.5 %

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 firm has a market capitalization of $5.96 billion, a price-to-earnings ratio of 11.92 and a beta of 1.36. The firm has a 50 day moving average price of $420.40 and a two-hundred day moving average price of $373.63.

Group 1 Automotive (NYSE:GPI - Get Free Report) last issued its quarterly 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 business 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 was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $12.07 earnings per share. On average, equities analysts expect that Group 1 Automotive, Inc. will post 38.37 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 0.42%. The ex-dividend date of this dividend was Monday, December 2nd. Group 1 Automotive's dividend payout ratio is presently 5.01%.

Group 1 Automotive announced that its Board of Directors has initiated a share repurchase program 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 programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, Director Lincoln Pereira sold 6,000 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $426.68, for a total value of $2,560,080.00. Following the completion of the sale, the director now directly owns 98,467 shares of the company's stock, valued at approximately $42,013,899.56. This represents a 5.74 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Edward Mckissic sold 79 shares of Group 1 Automotive stock in a transaction on Tuesday, November 5th. The shares were sold at an average price of $374.01, for a total transaction of $29,546.79. Following the sale, the vice president now directly owns 6,259 shares of the company's stock, valued at $2,340,928.59. This trade represents a 1.25 % decrease in their position. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Assetmark Inc. increased its holdings in shares of Group 1 Automotive by 51.9% during the 3rd quarter. Assetmark Inc. now owns 82 shares of the company's stock valued at $31,000 after acquiring an additional 28 shares during the last quarter. Harbor Capital Advisors Inc. bought a new position in Group 1 Automotive during the third quarter worth about $36,000. Avior Wealth Management LLC bought a new position in shares of Group 1 Automotive during the 3rd quarter worth approximately $46,000. Headlands Technologies LLC acquired a new stake in shares of Group 1 Automotive in the 2nd quarter valued at $48,000. Finally, GAMMA Investing LLC grew its stake in Group 1 Automotive by 70.4% during the fourth quarter. GAMMA Investing LLC now owns 121 shares of the company's stock worth $51,000 after buying an additional 50 shares during the last quarter. 99.92% of the stock is owned by hedge funds and other 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.