Group 1 Automotive (NYSE:GPI) Shares Gap Down – Here’s Why

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $458.81, but opened at $440.00. Group 1 Automotive shares last traded at $445.53, with a volume of 37,034 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on GPI. Guggenheim increased their price objective on Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a report on Thursday, November 21st. JPMorgan Chase & Co. decreased their price target on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Jefferies Financial Group initiated coverage on Group 1 Automotive in a research report on Friday, December 13th. They issued a “buy” rating and a $500.00 price objective for the company. Stephens reaffirmed an “equal weight” rating and issued a $460.00 target price on shares of Group 1 Automotive in a research note on Thursday. Finally, StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $447.83.

Group 1 Automotive Trading Up 2.8 %

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 firm’s 50-day simple moving average is $430.63 and its 200 day simple moving average is $385.78. The firm has a market cap of $6.15 billion, a P/E ratio of 12.57 and a beta of 1.36.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings results on Wednesday, January 29th. The company reported $10.02 earnings per share for the quarter, beating analysts’ consensus estimates of $8.77 by $1.25. Group 1 Automotive had a return on equity of 18.25% and a net margin of 2.47%. As a group, analysts expect that Group 1 Automotive, Inc. will post 40.37 earnings per share for the current year.

Group 1 Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 2nd were paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a yield of 0.41%. The ex-dividend date was Monday, December 2nd. Group 1 Automotive’s payout ratio is currently 5.12%.

Group 1 Automotive announced that its Board of Directors has initiated a share 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 reacquire up to 9.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Group 1 Automotive

In other Group 1 Automotive news, VP Edward Mckissic sold 79 shares of the business’s 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 transaction, the vice president now owns 6,259 shares in the company, valued at $2,340,928.59. The trade was a 1.25 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lincoln Pereira sold 6,000 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $426.68, for a total transaction 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. The trade was a 5.74 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.70% of the company’s stock.

Hedge Funds Weigh In On Group 1 Automotive

Several institutional investors have recently made changes to their positions in the company. Congress Asset Management Co. lifted its position in Group 1 Automotive by 14.2% during the 4th quarter. Congress Asset Management Co. now owns 32,108 shares of the company’s stock worth $13,533,000 after acquiring an additional 3,986 shares during the period. Rhumbline Advisers raised its stake in shares of Group 1 Automotive by 2.4% during the 4th quarter. Rhumbline Advisers now owns 43,588 shares of the company’s stock worth $18,371,000 after buying an additional 1,025 shares during the period. Blue Trust Inc. grew its position in shares of Group 1 Automotive by 28.4% in the fourth quarter. Blue Trust Inc. now owns 498 shares of the company’s stock valued at $210,000 after purchasing an additional 110 shares during the period. Savant Capital LLC increased its position in shares of Group 1 Automotive by 8.2% during the fourth quarter. Savant Capital LLC now owns 622 shares of the company’s stock worth $262,000 after purchasing an additional 47 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB acquired a new stake in Group 1 Automotive in the 4th quarter valued at about $66,000. Hedge funds and other institutional investors own 99.92% 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.