Group 1 Automotive (GPI) Upgraded by ValuEngine to “Sell”

ValuEngine upgraded shares of Group 1 Automotive (NYSE:GPI) from a strong sell rating to a sell rating in a research report released on Thursday.

Other equities analysts also recently issued research reports about the stock. Zacks Investment Research downgraded shares of Group 1 Automotive from a buy rating to a hold rating in a report on Monday, October 8th. Morgan Stanley raised shares of Group 1 Automotive from an underweight rating to an equal weight rating and set a $61.00 price objective for the company in a report on Wednesday, November 14th. Buckingham Research raised shares of Group 1 Automotive from a neutral rating to a buy rating and set a $70.00 price objective for the company in a report on Monday, October 29th. They noted that the move was a valuation call. Finally, TheStreet downgraded shares of Group 1 Automotive from a b- rating to a c+ rating in a report on Thursday, October 18th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus price target of $77.40.

Group 1 Automotive stock traded up $1.00 during mid-day trading on Thursday, reaching $59.92. The company’s stock had a trading volume of 143,378 shares, compared to its average volume of 184,685. The company has a market cap of $1.14 billion, a PE ratio of 7.74, a P/E/G ratio of 1.64 and a beta of 1.82. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.03 and a quick ratio of 0.24. Group 1 Automotive has a twelve month low of $48.69 and a twelve month high of $83.97.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Thursday, October 25th. The company reported $2.47 EPS for the quarter, topping analysts’ consensus estimates of $2.39 by $0.08. The firm had revenue of $2.89 billion during the quarter. Group 1 Automotive had a net margin of 2.05% and a return on equity of 15.48%. Equities research analysts anticipate that Group 1 Automotive will post 8.88 earnings per share for the current year.

Group 1 Automotive declared that its Board of Directors has initiated a stock repurchase plan on Thursday, October 25th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to buy up to 9.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

The company also recently declared a quarterly dividend, which was paid on Monday, December 17th. Stockholders of record on Monday, December 3rd were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 1.74%. The ex-dividend date was Friday, November 30th. Group 1 Automotive’s dividend payout ratio (DPR) is 13.45%.

Institutional investors and hedge funds have recently made changes to their positions in the company. Cubist Systematic Strategies LLC boosted its holdings in shares of Group 1 Automotive by 2,902.7% during the second quarter. Cubist Systematic Strategies LLC now owns 22,580 shares of the company’s stock valued at $1,423,000 after acquiring an additional 21,828 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of Group 1 Automotive by 0.4% during the second quarter. Bank of New York Mellon Corp now owns 389,327 shares of the company’s stock valued at $24,527,000 after acquiring an additional 1,416 shares during the period. Tower Research Capital LLC TRC acquired a new position in shares of Group 1 Automotive during the second quarter valued at $135,000. Livingston Group Asset Management CO operating as Southport Capital Management acquired a new position in shares of Group 1 Automotive during the third quarter valued at $109,000. Finally, Marshall Wace LLP acquired a new position in shares of Group 1 Automotive during the third quarter valued at $14,704,000. 99.86% of the stock is owned by institutional investors.

About Group 1 Automotive

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry. It sells new and used cars, light trucks, and vehicle parts; arranges vehicle financing; sells service and insurance contracts; and provides automotive maintenance and repair services. The company has operations primarily in the metropolitan areas of Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina, and Texas in the United States; 28 towns in the United Kingdom; and in the metropolitan markets of Sao Paulo, Parana, Mato Grosso do Sul, and Santa Catarina, Brazil.

Further Reading: What is the Ex-Dividend Date in Investing?

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Analyst Recommendations for Group 1 Automotive (NYSE:GPI)

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