Group 1 Automotive (NYSE:GPI) Reaches New 1-Year Low After Analyst Downgrade

Group 1 Automotive, Inc. (NYSE:GPI) shares reached a new 52-week low during mid-day trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $410.00 to $370.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Group 1 Automotive traded as low as $331.59 and last traded at $334.74, with a volume of 152747 shares changing hands. The stock had previously closed at $338.40.

A number of other research firms have also recently weighed in on GPI. Barclays set a $470.00 price target on Group 1 Automotive in a report on Monday, February 2nd. Morgan Stanley set a $460.00 price objective on Group 1 Automotive in a research report on Monday, December 8th. Weiss Ratings lowered Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a research note on Friday, January 9th. Finally, Evercore assumed coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price target for the company. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $466.57.

Institutional Investors Weigh In On Group 1 Automotive

A number of institutional investors have recently modified their holdings of GPI. Salomon & Ludwin LLC acquired a new position in Group 1 Automotive during the 3rd quarter worth about $26,000. MAI Capital Management increased its stake in Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company’s stock worth $32,000 after purchasing an additional 42 shares during the period. Signaturefd LLC lifted its position in shares of Group 1 Automotive by 54.9% during the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock worth $31,000 after purchasing an additional 28 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new position in shares of Group 1 Automotive in the second quarter valued at approximately $43,000. Finally, First Horizon Corp grew its holdings in shares of Group 1 Automotive by 881.8% in the fourth quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after purchasing an additional 97 shares in the last quarter. 99.92% of the stock is owned by institutional investors and hedge funds.

Group 1 Automotive Stock Performance

The stock has a market capitalization of $4.23 billion, a PE ratio of 13.38 and a beta of 0.90. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.25 and a current ratio of 1.06. The firm’s 50 day moving average is $392.76 and its two-hundred day moving average is $417.54.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings results on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing the consensus estimate of $9.36 by ($0.87). The business had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.71 billion. Group 1 Automotive had a return on equity of 17.00% and a net margin of 1.44%.The business’s revenue was up .6% on a year-over-year basis. During the same quarter last year, the firm earned $10.02 EPS. As a group, research analysts predict that Group 1 Automotive, Inc. will post 41 earnings per share for the current year.

Group 1 Automotive announced that its board has initiated a share repurchase plan on Tuesday, November 11th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 10.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

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.