Group 1 Automotive (NYSE:GPI) Stock Price Up 6.9% – Still a Buy?

Group 1 Automotive, Inc. (NYSE:GPI) shot up 6.9% during trading on Wednesday . The stock traded as high as $379.48 and last traded at $379.48. 59,700 shares were traded during trading, a decline of 55% from the average session volume of 133,474 shares. The stock had previously closed at $355.02.

Wall Street Analysts Forecast Growth

GPI has been the subject of several recent analyst reports. StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research report on Thursday. Bank of America lowered their target price on shares of Group 1 Automotive from $445.00 to $435.00 and set a “buy” rating on the stock in a research report on Monday, July 22nd. Stephens initiated coverage on shares of Group 1 Automotive in a research note on Thursday, September 12th. They issued an “equal weight” rating and a $394.00 target price on the stock. JPMorgan Chase & Co. boosted their price target on Group 1 Automotive from $360.00 to $420.00 and gave the company an “overweight” rating in a research note on Tuesday, September 10th. Finally, Morgan Stanley raised shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $285.00 to $430.00 in a research note on Wednesday, September 25th. Two equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $396.80.

Group 1 Automotive Stock Performance

The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.26 and a current ratio of 1.02. The firm has a market cap of $4.84 billion, a price-to-earnings ratio of 9.71, a price-to-earnings-growth ratio of 1.93 and a beta of 1.32. The stock has a 50-day moving average of $365.22 and a 200-day moving average of $329.12.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $9.93 by ($0.03). Group 1 Automotive had a return on equity of 18.83% and a net margin of 2.68%. The firm had revenue of $5.22 billion for the quarter, compared to the consensus estimate of $5.06 billion. During the same period last year, the company posted $12.07 earnings per share. The business’s revenue was up 11.0% compared to the same quarter last year. As a group, analysts anticipate that Group 1 Automotive, Inc. will post 38.99 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 16th. Stockholders of record on Monday, September 2nd were given a $0.47 dividend. The ex-dividend date of this dividend was Friday, August 30th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.52%. Group 1 Automotive’s payout ratio is 5.01%.

Insider Activity at Group 1 Automotive

In related news, VP Michael David Jones sold 1,200 shares of Group 1 Automotive stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $350.99, for a total transaction of $421,188.00. Following the sale, the vice president now directly owns 9,742 shares in the company, valued at $3,419,344.58. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds have recently bought and sold shares of GPI. Harbor Capital Advisors Inc. bought a new position in Group 1 Automotive during the third quarter valued at about $36,000. Hexagon Capital Partners LLC grew its holdings in Group 1 Automotive by 53.7% during the 2nd quarter. Hexagon Capital Partners LLC now owns 146 shares of the company’s stock valued at $43,000 after buying an additional 51 shares in the last quarter. Headlands Technologies LLC bought a new stake in Group 1 Automotive during the 2nd quarter worth approximately $48,000. Blue Trust Inc. boosted its stake in Group 1 Automotive by 47.5% during the second quarter. Blue Trust Inc. now owns 270 shares of the company’s stock valued at $79,000 after buying an additional 87 shares during the period. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Group 1 Automotive by 17.1% during the second quarter. EverSource Wealth Advisors LLC now owns 267 shares of the company’s stock worth $79,000 after purchasing an additional 39 shares in 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.