Group 1 Automotive (NYSE:GPI) Shares Gap Down – Here’s What Happened

Group 1 Automotive, Inc. (NYSE:GPI) shares gapped down before the market opened on Wednesday . The stock had previously closed at $458.81, but opened at $440.00. Group 1 Automotive shares last traded at $445.53, with a volume of 37,034 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on GPI. Guggenheim upped their price target on Group 1 Automotive from $420.00 to $442.00 and gave the stock a “buy” rating in a report on Thursday, November 21st. JPMorgan Chase & Co. reduced their price objective on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a research report on Friday, January 17th. StockNews.com upgraded shares of Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Finally, Jefferies Financial Group began coverage on shares of Group 1 Automotive in a research report on Friday, December 13th. They issued a “buy” rating and a $500.00 target price for the company. Two analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $436.83.

Group 1 Automotive Price Performance

The company has a debt-to-equity ratio of 0.91, a current ratio of 1.00 and a quick ratio of 0.24. The company has a market cap of $5.94 billion, a PE ratio of 11.84 and a beta of 1.36. The stock has a fifty day moving average price of $428.60 and a 200-day moving average price of $384.80.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Wednesday, January 29th. The company reported $10.02 earnings per share for the quarter, topping analysts’ consensus estimates of $8.77 by $1.25. Group 1 Automotive had a return on equity of 18.49% and a net margin of 2.68%. On average, equities analysts expect that Group 1 Automotive, Inc. will post 38.29 earnings per share for the current year.

Group 1 Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were issued a dividend of $0.47 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.88 annualized dividend and a dividend yield of 0.42%. Group 1 Automotive’s dividend payout ratio is presently 5.01%.

Group 1 Automotive declared that its Board of Directors has initiated a stock buyback plan on Tuesday, November 12th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 9.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Group 1 Automotive

In related news, Director Lincoln Pereira sold 6,000 shares of Group 1 Automotive stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $426.68, for a total value of $2,560,080.00. Following the transaction, the director now directly owns 98,467 shares of the company’s stock, valued at $42,013,899.56. The trade was a 5.74 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Edward Mckissic sold 79 shares of the stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total value of $29,546.79. Following the completion of the transaction, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. The trade was a 1.25 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

Large investors have recently added to or reduced their stakes in the company. Franklin Resources Inc. grew its stake in Group 1 Automotive by 2.3% in the third quarter. Franklin Resources Inc. now owns 156,627 shares of the company’s stock worth $55,701,000 after purchasing an additional 3,507 shares during the period. B. Metzler seel. Sohn & Co. Holding AG purchased a new position in Group 1 Automotive in the 3rd quarter worth approximately $3,286,000. Raymond James & Associates boosted its stake in Group 1 Automotive by 14.7% during the 3rd quarter. Raymond James & Associates now owns 46,483 shares of the company’s stock valued at $17,805,000 after purchasing an additional 5,942 shares during the last quarter. Pathstone Holdings LLC lifted its position in Group 1 Automotive by 25.8% during the third quarter. Pathstone Holdings LLC now owns 10,180 shares of the company’s stock valued at $3,899,000 after purchasing an additional 2,089 shares during the period. Finally, Park Avenue Securities LLC grew its position in Group 1 Automotive by 9.8% in the 4th quarter. Park Avenue Securities LLC now owns 2,355 shares of the company’s stock worth $993,000 after purchasing an additional 210 shares during the period. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

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.