Key Points
- Insider sale: SVP Gillian Hobson sold 2,000 Group 1 Automotive shares for approximately $516,480, reducing her direct holdings by about 21% to 7,543 shares.
- Weak quarterly results: The company reported quarterly EPS of $9.36, below the $9.50 consensus, while revenue of $5.40 billion missed expectations and declined 6.7% year over year.
- Mixed outlook: Group 1 Automotive pays a quarterly dividend of $0.55, while institutional investors own 99.92% of the stock; analysts’ overall rating is “Hold,” with a consensus price target of $340.33.
Group 1 Automotive, Inc. (NYSE:GPI - Get Free Report) SVP Gillian Hobson sold 2,000 shares of the stock in a transaction dated Thursday, October 29th. The stock was sold at an average price of $258.24, for a total value of $516,480.00. Following the sale, the senior vice president directly owned 7,543 shares in the company, valued at $1,947,904.32. This trade represents a 20.96% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link.
Group 1 Automotive Stock Up 3.8%
Shares of NYSE GPI opened at $258.99 on Friday. Group 1 Automotive, Inc. has a 52 week low of $224.65 and a 52 week high of $429.00. The business has a 50-day simple moving average of $254.68 and a two-hundred day simple moving average of $308.12. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. The company has a market cap of $3.09 billion, a P/E ratio of 8.20, a P/E/G ratio of 1.53 and a beta of 0.92.
Group 1 Automotive (NYSE:GPI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $9.36 earnings per share for the quarter, missing analysts' consensus estimates of $9.50 by ($0.14). Group 1 Automotive had a net margin of 1.75% and a return on equity of 15.18%. The company had revenue of $5.40 billion for the quarter, compared to analysts' expectations of $5.58 billion. During the same period in the previous year, the firm earned $10.45 EPS. The firm's quarterly revenue was down 6.7% compared to the same quarter last year. Research analysts anticipate that Group 1 Automotive, Inc. will post 37.68 earnings per share for the current fiscal year.
Group 1 Automotive Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Tuesday, September 1st. Group 1 Automotive's dividend payout ratio (DPR) is 6.96%.
Institutional Trading of Group 1 Automotive
Several institutional investors and hedge funds have recently made changes to their positions in GPI. BlackRock Inc. bought a new stake in shares of Group 1 Automotive during the 2nd quarter worth $593,420,000. Conifer Management L.L.C. bought a new position in Group 1 Automotive in the second quarter valued at $281,561,390. Dimensional Fund Advisors LP increased its stake in Group 1 Automotive by 1.5% in the first quarter. Dimensional Fund Advisors LP now owns 688,416 shares of the company's stock valued at $227,612,000 after acquiring an additional 10,100 shares during the last quarter. Lakewood Capital Management LP bought a new position in Group 1 Automotive in the second quarter valued at $72,098,000. Finally, The Manufacturers Life Insurance Company bought a new position in Group 1 Automotive in the second quarter valued at $57,174,000. Hedge funds and other institutional investors own 99.92% of the company's stock.
Key Headlines Impacting Group 1 Automotive
Here are the key news stories impacting Group 1 Automotive this week:
- Positive Sentiment: Investors are refocusing on Group 1 Automotive’s potentially undervalued valuation following the Q3 report. The company remains profitable, and its earnings multiple is relatively modest, which could support the stock if operating conditions stabilize. Group 1 Automotive Q3 Results Put Its Undervalued Narrative Back In Focus
- Positive Sentiment: Recent purchases by Conifer Management, totaling 79,529 shares across two reported transactions, signal that an investment holder sees value in GPI despite near-term earnings weakness. Conifer Management Buys 34,529 Shares
- Neutral Sentiment: UBS lowered its price target from $271 to $259 and maintained a neutral rating, indicating limited expected upside based on current valuation. UBS Group Stock Recommendations
- Negative Sentiment: Third-quarter adjusted earnings of $9.36 per share missed analysts’ estimates, while revenue of $5.40 billion fell short of the roughly $5.58 billion consensus and declined 6.7% year over year. EPS also dropped from $10.45 in the prior-year quarter. Group 1 Automotive Q3 Earnings and Revenues Miss Estimates
- Negative Sentiment: Management’s earnings-call commentary highlighted continued growth opportunities but also strain on margins, a concern for an auto retailer operating with a net margin of just 1.31%. Group 1 Automotive Earnings Call Highlights Growth Amid Strain
- Negative Sentiment: Senior Vice President Gillian A. Hobson sold 2,000 shares for approximately $516,480, reducing her direct ownership by about 21%. Although not necessarily a broader management signal, the sale adds a modest negative headline. Group 1 Automotive Insider Sold Shares Worth $516,480
Wall Street Analyst Weigh In
GPI has been the subject of a number of recent analyst reports. Zacks Research lowered shares of Group 1 Automotive from a "hold" rating to a "strong sell" rating in a research report on Monday, August 10th. Weiss Ratings downgraded Group 1 Automotive from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Evercore set a $360.00 price objective on Group 1 Automotive in a research note on Tuesday, August 4th. DA Davidson set a $425.00 target price on Group 1 Automotive in a research report on Friday, July 10th. Finally, Benchmark restated a "buy" rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Group 1 Automotive presently has an average rating of "Hold" and a consensus price target of $340.33.
Read Our Latest Report on GPI
About Group 1 Automotive
(
Get Free Report)
Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.
In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.
Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
