Group 1 Automotive (NYSE:GPI) Board of Directors Authorizes Share Repurchase Program

Group 1 Automotive (NYSE:GPI) declared that its board has initiated a stock buyback plan on Tuesday, November 11th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 10.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on GPI shares. Zacks Research lowered Group 1 Automotive from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 13th. Wall Street Zen cut shares of Group 1 Automotive from a “buy” rating to a “hold” rating in a research report on Saturday, August 30th. Bank of America reduced their price target on shares of Group 1 Automotive from $560.00 to $545.00 and set a “buy” rating on the stock in a research report on Wednesday, September 10th. Barclays began coverage on shares of Group 1 Automotive in a research note on Tuesday. They issued an “overweight” rating and a $510.00 price target for the company. Finally, JPMorgan Chase & Co. reduced their target price on Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $478.88.

Group 1 Automotive Trading Down 2.5%

NYSE:GPI opened at $379.86 on Wednesday. The stock has a market cap of $4.80 billion, a price-to-earnings ratio of 13.29, a PEG ratio of 1.09 and a beta of 0.91. The company has a quick ratio of 0.24, a current ratio of 1.06 and a debt-to-equity ratio of 1.06. The company’s 50 day moving average price is $435.28 and its 200-day moving average price is $436.35. Group 1 Automotive has a 52 week low of $355.91 and a 52 week high of $490.09.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Tuesday, October 28th. The company reported $10.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.64 by ($0.19). Group 1 Automotive had a net margin of 1.67% and a return on equity of 18.08%. The business had revenue of $5.78 billion during the quarter, compared to the consensus estimate of $5.67 billion. During the same period last year, the company posted $9.90 earnings per share. The business’s revenue was up 10.7% compared to the same quarter last year. On average, equities research analysts forecast that Group 1 Automotive will post 41 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Lincoln Pereira sold 7,000 shares of the stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $469.34, for a total transaction of $3,285,380.00. Following the sale, the director directly owned 82,967 shares of the company’s stock, valued at $38,939,731.78. This trade represents a 7.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.10% of the stock is currently owned by insiders.

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.