Group 1 Automotive, Inc. (NYSE:GPI) Given Average Recommendation of “Moderate Buy” by Brokerages

Group 1 Automotive, Inc. (NYSE:GPI) has received a consensus rating of “Moderate Buy” from the six research firms that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1-year price target among brokers that have covered the stock in the last year is $460.33.

GPI has been the subject of a number of research reports. Guggenheim raised their target price on 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 started coverage on Group 1 Automotive in a report on Friday, December 13th. They issued a “buy” rating and a $500.00 price target on the stock. JPMorgan Chase & Co. raised their price target on Group 1 Automotive from $420.00 to $495.00 and gave the company an “overweight” rating in a report on Friday, February 14th. Finally, Stephens restated an “equal weight” rating and set a $460.00 target price on shares of Group 1 Automotive in a report on Thursday, January 30th.

Insider Activity at Group 1 Automotive

In other news, Director Lincoln Pereira sold 6,000 shares of the firm’s stock in a transaction on 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 transaction, the director now directly owns 98,467 shares of the company’s stock, valued at $42,013,899.56. This trade represents a 5.74 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Group 1 Automotive

Several hedge funds have recently added to or reduced their stakes in the company. FMR LLC increased its holdings in 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 purchasing an additional 232,846 shares during the period. Norges Bank purchased a new position in Group 1 Automotive during the 4th quarter valued at about $65,721,000. Wealthfront Advisers LLC purchased a new position in Group 1 Automotive during the 4th quarter valued at about $37,119,000. Thrivent Financial for Lutherans increased its holdings in Group 1 Automotive by 111.1% during the 4th quarter. Thrivent Financial for Lutherans now owns 161,216 shares of the company’s stock valued at $67,949,000 after purchasing an additional 84,832 shares during the period. Finally, Advent International L.P. increased its holdings in Group 1 Automotive by 65.7% during the 4th quarter. Advent International L.P. now owns 203,951 shares of the company’s stock valued at $85,961,000 after purchasing an additional 80,870 shares during the period. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Price Performance

Shares of NYSE GPI opened at $432.65 on Tuesday. Group 1 Automotive has a twelve month low of $260.00 and a twelve month high of $490.09. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 0.92. The company has a market capitalization of $5.73 billion, a price-to-earnings ratio of 11.77 and a beta of 1.33. The firm has a 50-day moving average of $449.52 and a two-hundred day moving average of $409.61.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings data on Wednesday, January 29th. The company reported $10.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.77 by $1.25. Group 1 Automotive had a return on equity of 18.09% and a net margin of 2.47%. As a group, analysts expect that Group 1 Automotive will post 41 earnings per share for the current fiscal year.

Group 1 Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.46%. The ex-dividend date is Monday, March 3rd. This is a positive change from Group 1 Automotive’s previous quarterly dividend of $0.47. Group 1 Automotive’s dividend payout ratio (DPR) is currently 5.44%.

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

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.