Group 1 Automotive (NYSE:GPI) Reaches New 52-Week High – Time to Buy?

Group 1 Automotive, Inc. (NYSE:GPI)’s share price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $458.00 and last traded at $454.33, with a volume of 12050 shares traded. The stock had previously closed at $449.57.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on GPI shares. JPMorgan Chase & Co. lowered their price objective on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating on the stock in a report on Friday, January 17th. Jefferies Financial Group began coverage on Group 1 Automotive in a report on Friday, December 13th. They issued a “buy” rating and a $500.00 price target for the company. Guggenheim lifted their price objective 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. Finally, StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, Group 1 Automotive presently has an average rating of “Moderate Buy” and an average target price of $436.83.

Group 1 Automotive Stock Up 1.3 %

The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.24 and a current ratio of 1.00. The firm has a market capitalization of $6.06 billion, a P/E ratio of 12.14 and a beta of 1.36. The stock has a fifty day moving average price of $426.42 and a two-hundred day moving average price of $382.52.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.87 by $0.03. The company had revenue of $5.22 billion during the quarter, compared to analyst estimates of $5.06 billion. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. The firm’s quarterly revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $12.07 EPS. Research analysts forecast that Group 1 Automotive, Inc. will post 38.29 EPS for the current year.

Group 1 Automotive Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were paid a dividend of $0.47 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.88 annualized dividend and a dividend yield of 0.41%. Group 1 Automotive’s dividend payout ratio (DPR) is presently 5.01%.

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

Insider Activity at Group 1 Automotive

In related 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 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 $42,013,899.56. This trade represents a 5.74 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Edward Mckissic sold 79 shares of the firm’s stock in a transaction on Tuesday, November 5th. The shares were sold at an average price of $374.01, for a total value of $29,546.79. Following the sale, the vice president now directly owns 6,259 shares of the company’s stock, valued at $2,340,928.59. This represents a 1.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Group 1 Automotive

Several hedge funds and other institutional investors have recently made changes to their positions in the company. American Century Companies Inc. grew its stake in shares of Group 1 Automotive by 35.0% during the second quarter. American Century Companies Inc. now owns 1,654 shares of the company’s stock worth $492,000 after purchasing an additional 429 shares during the period. Sei Investments Co. boosted its position in shares of Group 1 Automotive by 4.9% during the second quarter. Sei Investments Co. now owns 4,248 shares of the company’s stock worth $1,263,000 after buying an additional 197 shares during the period. Bank of Montreal Can boosted its position in shares of Group 1 Automotive by 139.4% during the second quarter. Bank of Montreal Can now owns 13,540 shares of the company’s stock worth $4,131,000 after buying an additional 7,885 shares during the period. Squarepoint Ops LLC raised its holdings in Group 1 Automotive by 80.1% during the second quarter. Squarepoint Ops LLC now owns 9,168 shares of the company’s stock worth $2,725,000 after acquiring an additional 4,077 shares in the last quarter. Finally, Susquehanna Fundamental Investments LLC raised its holdings in Group 1 Automotive by 327.0% during the second quarter. Susquehanna Fundamental Investments LLC now owns 15,459 shares of the company’s stock worth $4,596,000 after acquiring an additional 11,839 shares in the last quarter. 99.92% of the stock is owned by institutional investors and hedge funds.

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.