Seaport Res Ptn Issues Pessimistic Outlook for GPI Earnings

Group 1 Automotive, Inc. (NYSE:GPI) – Equities researchers at Seaport Res Ptn reduced their Q4 2024 earnings per share estimates for shares of Group 1 Automotive in a note issued to investors on Thursday, January 16th. Seaport Res Ptn analyst G. Chin now anticipates that the company will earn $8.85 per share for the quarter, down from their prior forecast of $9.22. The consensus estimate for Group 1 Automotive’s current full-year earnings is $38.36 per share.

GPI has been the topic of a number of other research reports. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a report on Friday, November 8th. Guggenheim increased their target price on Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a report on Thursday, November 21st. Morgan Stanley raised Group 1 Automotive from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $285.00 to $430.00 in a research note on Wednesday, September 25th. Jefferies Financial Group initiated coverage on Group 1 Automotive in a research note on Friday, December 13th. They set a “buy” rating and a $500.00 price target on the stock. Finally, JPMorgan Chase & Co. reduced their price target on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating on the stock in a research note on Friday, January 17th. Two research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $436.83.

Group 1 Automotive Price Performance

Shares of NYSE:GPI opened at $447.87 on Monday. The business’s fifty day moving average price is $424.50 and its two-hundred day moving average price is $379.07. The stock has a market cap of $5.97 billion, a PE ratio of 11.93 and a beta of 1.36. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.24 and a current ratio of 1.00. Group 1 Automotive has a one year low of $255.73 and a one year high of $456.68.

Group 1 Automotive (NYSE:GPI) last announced its earnings results on Wednesday, October 30th. The company reported $9.90 EPS for the quarter, beating analysts’ consensus estimates of $9.87 by $0.03. The firm had revenue of $5.22 billion for the quarter, compared to analysts’ expectations of $5.06 billion. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. Group 1 Automotive’s quarterly revenue was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $12.07 EPS.

Institutional Trading of Group 1 Automotive

Several large investors have recently modified their holdings of GPI. Assetmark Inc. grew its stake in Group 1 Automotive by 51.9% in the third quarter. Assetmark Inc. now owns 82 shares of the company’s stock worth $31,000 after purchasing an additional 28 shares in the last quarter. Avior Wealth Management LLC grew its stake in Group 1 Automotive by 25.6% in the fourth quarter. Avior Wealth Management LLC now owns 152 shares of the company’s stock worth $64,000 after purchasing an additional 31 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Group 1 Automotive by 17.1% in 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. Nomura Asset Management Co. Ltd. grew its stake in Group 1 Automotive by 20.0% in the third quarter. Nomura Asset Management Co. Ltd. now owns 264 shares of the company’s stock worth $101,000 after purchasing an additional 44 shares in the last quarter. Finally, GAMMA Investing LLC grew its stake in Group 1 Automotive by 70.4% in the fourth quarter. GAMMA Investing LLC now owns 121 shares of the company’s stock worth $51,000 after purchasing an additional 50 shares in the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, VP Edward Mckissic sold 79 shares of the stock in a transaction 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 transaction, the vice president now directly owns 6,259 shares of the company’s stock, valued at approximately $2,340,928.59. This trade represents a 1.25 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Lincoln Pereira sold 6,000 shares of the firm’s stock in a transaction dated Monday, December 16th. The shares were 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 in the company, valued at $42,013,899.56. This trade represents a 5.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.70% of the company’s stock.

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

Group 1 Automotive Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 2nd were given a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 0.42%. The ex-dividend date of this dividend was Monday, December 2nd. Group 1 Automotive’s dividend payout ratio (DPR) is currently 5.01%.

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.