Group 1 Automotive (NYSE:GPI) Shares Gap Down on Disappointing Earnings

Group 1 Automotive, Inc. (NYSE:GPI)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $396.41, but opened at $372.06. Group 1 Automotive shares last traded at $375.2260, with a volume of 85,290 shares trading hands.

The company reported $10.45 EPS for the quarter, missing analysts’ consensus estimates of $10.64 by ($0.19). The firm had revenue of $5.78 billion for the quarter, compared to analyst estimates of $5.67 billion. Group 1 Automotive had a return on equity of 18.08% and a net margin of 1.67%.The company’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same period in the previous year, the firm posted $9.90 earnings per share.

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were paid a dividend of $0.50 per share. The ex-dividend date was Monday, December 1st. This represents a $2.00 annualized dividend and a dividend yield of 0.6%. Group 1 Automotive’s dividend payout ratio (DPR) is currently 7.00%.

Group 1 Automotive announced that its Board of Directors has initiated a share buyback program on Tuesday, November 11th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 10.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Trending Headlines about Group 1 Automotive

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Management said recent and announced acquisitions will add roughly $640M of annual revenue and highlighted a record $3.6B in gross profit for the period, supporting longer‑term revenue and scale upside as integrations proceed. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Positive Sentiment: Company press release and slide deck present full-year 2025 results and operational detail, confirming the gross profit record and describing a UK restructuring intended to improve margins and simplify the footprint. These items lend credibility to management’s stated recovery plan. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Earnings call transcripts summarize management commentary on margin trends, inventory and the UK actions; useful for assessing cadence of cost saves and how acquisition synergies are expected to flow to EPS. Read the full transcript for tone on guidance and capital allocation. Group 1 Automotive, Inc. (GPI) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Reported EPS of $8.49 missed consensus (~$9.36) and revenue of $5.58B missed estimates, signaling weaker near‑term profitability versus expectations and contributing directly to the stock decline. Group 1 Automotive (GPI) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Media coverage points to new‑car sales weakness as a drag on the quarter; investors may be concerned about near‑term consumer demand, inventory mix and margin pressure across new-vehicle channels. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh

Wall Street Analysts Forecast Growth

GPI has been the subject of a number of recent analyst reports. Barclays lowered their price objective on Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating for the company in a research note on Wednesday, January 21st. Morgan Stanley set a $460.00 price target on shares of Group 1 Automotive in a research report on Monday, December 8th. Weiss Ratings lowered shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, December 29th. JPMorgan Chase & Co. reduced their price objective on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Finally, Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Group 1 Automotive presently has an average rating of “Moderate Buy” and an average target price of $475.14.

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds have recently added to or reduced their stakes in GPI. Pictet Asset Management Holding SA increased its stake in Group 1 Automotive by 7.0% during the fourth quarter. Pictet Asset Management Holding SA now owns 1,927 shares of the company’s stock valued at $758,000 after purchasing an additional 126 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Group 1 Automotive by 66.5% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,001 shares of the company’s stock valued at $1,574,000 after buying an additional 1,598 shares during the period. First Horizon Corp grew its position in shares of Group 1 Automotive by 881.8% during the 4th quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after buying an additional 97 shares during the last quarter. CWM LLC raised its stake in Group 1 Automotive by 7.2% during the fourth quarter. CWM LLC now owns 551 shares of the company’s stock worth $217,000 after acquiring an additional 37 shares during the period. Finally, Farther Finance Advisors LLC raised its stake in Group 1 Automotive by 6.4% during the fourth quarter. Farther Finance Advisors LLC now owns 1,210 shares of the company’s stock worth $476,000 after acquiring an additional 73 shares during the period. Institutional investors and hedge funds own 99.92% of the company’s stock.

Group 1 Automotive Stock Down 8.5%

The company has a debt-to-equity ratio of 1.06, a current ratio of 1.06 and a quick ratio of 0.25. The stock’s fifty day simple moving average is $401.69 and its 200-day simple moving average is $422.31. The stock has a market cap of $4.58 billion, a P/E ratio of 12.70 and a beta of 0.89.

About Group 1 Automotive

Group 1 Automotive, Inc (NYSE: GPI) is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.