Group 1 Automotive (NYSE:GPI) Reaches New 1-Year Low After Earnings Miss

Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week low on Friday following a dissappointing earnings announcement. The company traded as low as $353.21 and last traded at $354.05, with a volume of 99563 shares traded. The stock had previously closed at $363.16.

The company reported $8.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $9.36 by ($0.87). The business had revenue of $5.58 billion for the quarter, compared to analysts’ expectations of $5.71 billion. Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.00%. The company’s revenue for the quarter was up .6% compared to the same quarter last year. During the same period in the prior year, the business earned $10.02 earnings per share.

Group 1 Automotive Announces Dividend

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

Group 1 Automotive announced that its Board of Directors has initiated a stock buyback program on Tuesday, November 11th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to buy up to 10.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Trending Headlines about Group 1 Automotive

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

• Positive Sentiment: Analysts and commentators point to above‑average financial growth and a longer‑term upside thesis for Group 1 based on margin recovery and scale benefits, which could support a rebound if execution continues. Is Group 1 Automotive (GPI) a Solid Growth Stock? 3 Reasons to Think “Yes”
• Positive Sentiment: Management highlighted a roughly $640M revenue lift from recent acquisitions and a record ~$3.6B gross profit, suggesting acquisitions and parts/service/used-vehicle strength are propping revenue and profitability long term. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Positive Sentiment: Technical analysis flags GPI as oversold after recent selling, and some notes point to analysts revising estimates higher — a setup that could produce a short‑term trend reversal if fundamentals stabilize. Group 1 Automotive (GPI) Loses 7.7% in 4 Weeks, Here’s Why a Trend Reversal May be Around the Corner
• Neutral Sentiment: Company earnings call and slide deck provide detail on strategy, UK restructuring and margin initiatives — useful for investors but not an immediate market mover absent updated guidance. Group 1 Automotive Inc (GPI) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic …
• Neutral Sentiment: Full quarterly report and PR materials are available for deeper review of segment performance and cash/debt position. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Core near‑term negative: Q4 EPS of $8.49 missed consensus ($9.36) and revenue of $5.58B missed estimates (~$5.71B); EPS is materially down from $10.02 a year ago — this earnings miss is the primary driver of today’s sell‑off. Group 1 Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: New‑vehicle sales weakness weighed on results and commentary; several outlets flagged that slower new car sales diluted overall margins despite gains in used vehicles and parts/service. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh

Wall Street Analyst Weigh In

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

Institutional Trading of Group 1 Automotive

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Keybank National Association OH purchased a new stake in shares of Group 1 Automotive in the second quarter worth $335,000. Prudential Financial Inc. raised its holdings in shares of Group 1 Automotive by 2.7% in the 2nd quarter. Prudential Financial Inc. now owns 25,668 shares of the company’s stock valued at $11,209,000 after acquiring an additional 681 shares in the last quarter. Y Intercept Hong Kong Ltd raised its holdings in shares of Group 1 Automotive by 133.8% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 2,974 shares of the company’s stock valued at $1,299,000 after acquiring an additional 1,702 shares in the last quarter. Envestnet Asset Management Inc. boosted its position in shares of Group 1 Automotive by 3.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 44,751 shares of the company’s stock valued at $19,543,000 after acquiring an additional 1,505 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd grew its holdings in shares of Group 1 Automotive by 778.3% during the second quarter. Dynamic Technology Lab Private Ltd now owns 5,270 shares of the company’s stock worth $2,301,000 after purchasing an additional 4,670 shares in the last quarter. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Stock Down 2.3%

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 company has a fifty day moving average price of $400.80 and a 200 day moving average price of $421.43. The company has a market cap of $4.48 billion, a PE ratio of 14.19 and a beta of 0.89.

Group 1 Automotive Company Profile

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.