StockNews.com Lowers Group 1 Automotive (NYSE:GPI) to Sell

StockNews.com downgraded shares of Group 1 Automotive (NYSE:GPI) from a hold rating to a sell rating in a research report released on Tuesday morning.

A number of other brokerages also recently weighed in on GPI. JPMorgan Chase & Co. boosted their price target on Group 1 Automotive from $360.00 to $420.00 and gave the stock an overweight rating in a research report on Tuesday, September 10th. Stephens started coverage on Group 1 Automotive in a report on Thursday, September 12th. They set an equal weight rating and a $394.00 target price on the stock. Bank of America cut their price target on Group 1 Automotive from $445.00 to $435.00 and set a buy rating for the company in a report on Monday, July 22nd. Finally, Morgan Stanley upgraded shares of Group 1 Automotive from an equal weight rating to an overweight rating and upped their price objective for the company from $285.00 to $430.00 in a report on Wednesday, September 25th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of Moderate Buy and a consensus target price of $396.80.

Group 1 Automotive Price Performance

NYSE:GPI opened at $356.87 on Tuesday. The stock has a market capitalization of $4.83 billion, a PE ratio of 8.42, a P/E/G ratio of 1.78 and a beta of 1.32. Group 1 Automotive has a 1-year low of $228.84 and a 1-year high of $393.93. The firm has a fifty day simple moving average of $362.90 and a 200 day simple moving average of $322.91. The company has a current ratio of 1.02, a quick ratio of 0.26 and a debt-to-equity ratio of 0.80.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings data on Wednesday, July 24th. The company reported $9.80 EPS for the quarter, beating analysts’ consensus estimates of $9.36 by $0.44. The company had revenue of $4.70 billion during the quarter, compared to the consensus estimate of $4.68 billion. Group 1 Automotive had a net margin of 3.03% and a return on equity of 20.53%. The company’s quarterly revenue was up 3.0% on a year-over-year basis. During the same quarter last year, the firm posted $11.73 EPS. On average, research analysts expect that Group 1 Automotive will post 39.39 EPS for the current fiscal year.

Group 1 Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 16th. Shareholders of record on Monday, September 2nd were issued a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 0.53%. The ex-dividend date of this dividend was Friday, August 30th. Group 1 Automotive’s dividend payout ratio is 4.44%.

Insiders Place Their Bets

In other news, VP Michael David Jones sold 1,200 shares of the business’s stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $350.99, for a total value of $421,188.00. Following the completion of the sale, the vice president now owns 9,742 shares of the company’s stock, valued at approximately $3,419,344.58. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.70% of the company’s stock.

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 business. The Manufacturers Life Insurance Company increased its stake in Group 1 Automotive by 22.0% during the 2nd 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. Woodson Capital Management LP grew its holdings in shares of Group 1 Automotive by 114.6% during the 1st quarter. Woodson Capital Management LP now owns 142,500 shares of the company’s stock worth $41,643,000 after purchasing an additional 76,102 shares in the last quarter. Hennessy Advisors Inc. increased its position in shares of Group 1 Automotive by 18.1% in the second quarter. Hennessy Advisors Inc. now owns 108,500 shares of the company’s stock worth $32,255,000 after purchasing an additional 16,600 shares during the period. Shellback Capital LP raised its stake in Group 1 Automotive by 27.1% in the second quarter. Shellback Capital LP now owns 95,302 shares of the company’s stock valued at $28,331,000 after purchasing an additional 20,302 shares in the last quarter. Finally, Wellington Management Group LLP bought a new stake in Group 1 Automotive during the fourth quarter worth about $21,296,000. 99.92% of the stock is currently owned by institutional investors and hedge funds.

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.