HITE Hedge Asset Management LLC Cuts Position in Group 1 Automotive, Inc. (NYSE:GPI)

HITE Hedge Asset Management LLC trimmed its stake in shares of Group 1 Automotive, Inc. (NYSE:GPI) by 45.0% in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 6,436 shares of the company’s stock after selling 5,271 shares during the period. HITE Hedge Asset Management LLC’s holdings in Group 1 Automotive were worth $2,465,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company raised its position in Group 1 Automotive by 22.0% during the second quarter. The Manufacturers Life Insurance Company now owns 639,142 shares of the company’s stock worth $190,004,000 after acquiring an additional 115,143 shares during the period. FMR LLC lifted its position in shares of Group 1 Automotive by 133.0% during the 3rd quarter. FMR LLC now owns 407,930 shares of the company’s stock valued at $156,253,000 after acquiring an additional 232,846 shares during the period. Charles Schwab Investment Management Inc. grew its stake in shares of Group 1 Automotive by 1.1% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 152,923 shares of the company’s stock valued at $58,576,000 after buying an additional 1,735 shares during the period. Hennessy Advisors Inc. lifted its holdings in Group 1 Automotive by 18.1% in the 2nd quarter. Hennessy Advisors Inc. now owns 108,500 shares of the company’s stock worth $32,255,000 after buying an additional 16,600 shares in the last quarter. Finally, Shellback Capital LP grew its stake in shares of Group 1 Automotive by 27.1% in the 2nd quarter. Shellback Capital LP now owns 95,302 shares of the company’s stock valued at $28,331,000 after buying an additional 20,302 shares during the period. Institutional investors own 99.92% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GPI. StockNews.com upgraded shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a report on Friday, November 8th. Stephens began coverage on Group 1 Automotive in a report on Thursday, September 12th. They set an “equal weight” rating and a $394.00 price objective on the stock. Morgan Stanley upgraded Group 1 Automotive from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $285.00 to $430.00 in a report on Wednesday, September 25th. JPMorgan Chase & Co. increased their target price on Group 1 Automotive from $420.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, November 5th. Finally, Guggenheim increased their price objective on Group 1 Automotive from $420.00 to $442.00 and gave the stock a “buy” rating in a report on Thursday, November 21st. Two research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $425.20.

Group 1 Automotive Price Performance

NYSE GPI opened at $428.13 on Tuesday. The firm has a market capitalization of $5.70 billion, a P/E ratio of 11.41 and a beta of 1.35. The firm’s fifty day simple moving average is $383.39 and its two-hundred day simple moving average is $347.81. Group 1 Automotive, Inc. has a 12-month low of $255.73 and a 12-month high of $440.32. The company has a current ratio of 1.00, a quick ratio of 0.24 and a debt-to-equity ratio of 0.91.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.87 by $0.03. The business 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%. The company’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same period in the previous year, the company earned $12.07 EPS. Analysts forecast that Group 1 Automotive, Inc. will post 38.37 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be issued a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 0.44%. The ex-dividend date is Monday, December 2nd. Group 1 Automotive’s payout ratio is 5.01%.

Group 1 Automotive announced that its Board of Directors has initiated a stock buyback program on Tuesday, November 12th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 9.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Insider Activity at Group 1 Automotive

In related news, VP Edward Mckissic sold 79 shares of the business’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 value of $29,546.79. Following the completion of the transaction, the vice president now directly owns 6,259 shares in the company, valued at approximately $2,340,928.59. The trade was a 1.25 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.70% of the company’s stock.

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.