Group 1 Automotive Inc. (GPI) Downgraded to “Sell” at Zacks Investment Research
Group 1 Automotive Inc. (NYSE:GPI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “Group 1 Automotive's dependence on certain auto manufacturers and intensifying competition in the automotive market remain concerns. The company's cash is locked up in inventories to a large extend, which can affect short-term liquidity. Group 1 Automotive’s earnings estimates have been stable lately. The company has a mixed record of surprises in recent quarters.”
GPI has been the topic of several other research reports. TheStreet raised Group 1 Automotive from a “hold” rating to a “buy” rating in a report on Thursday, September 15th. Buckingham Research upgraded shares of Group 1 Automotive from a “neutral” rating to a “buy” rating in a research report on Wednesday, July 20th. Goldman Sachs Group Inc. restated a “neutral” rating and issued a $61.00 price target (down previously from $64.00) on shares of Group 1 Automotive in a research report on Saturday, October 8th. Finally, Seaport Global Securities initiated coverage on shares of Group 1 Automotive in a research report on Tuesday, August 9th. They issued a “neutral” rating on the stock. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $64.00.
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Shares of Group 1 Automotive (NYSE:GPI) traded down 3.87% on Thursday, hitting $62.32. The company had a trading volume of 56,848 shares. Group 1 Automotive has a 12-month low of $47.31 and a 12-month high of $89.64. The company has a market cap of $1.29 billion, a price-to-earnings ratio of 15.66 and a beta of 1.58. The company has a 50 day moving average of $61.33 and a 200-day moving average of $59.10.
Group 1 Automotive (NYSE:GPI) last announced its earnings results on Thursday, July 28th. The company reported $2.16 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.09 by $0.07. Group 1 Automotive had a return on equity of 17.97% and a net margin of 0.82%. The firm had revenue of $2.10 billion for the quarter, compared to analysts’ expectations of $2.86 billion. During the same quarter in the previous year, the company earned $1.98 earnings per share. The firm’s quarterly revenue was up 2.1% compared to the same quarter last year. On average, analysts forecast that Group 1 Automotive will post $7.54 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 1.42%. The ex-dividend date was Tuesday, August 30th. Group 1 Automotive’s payout ratio is 22.66%.
In other Group 1 Automotive news, VP Darryl M. Burman sold 2,000 shares of Group 1 Automotive stock in a transaction that occurred on Monday, August 29th. The shares were sold at an average price of $58.90, for a total transaction of $117,800.00. Following the transaction, the vice president now directly owns 72,633 shares in the company, valued at approximately $4,278,083.70. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Earl J. Hesterberg sold 10,000 shares of Group 1 Automotive stock in a transaction that occurred on Thursday, August 18th. The stock was sold at an average price of $59.97, for a total transaction of $599,700.00. Following the transaction, the chief executive officer now owns 165,251 shares in the company, valued at $9,910,102.47. The disclosure for this sale can be found here. Company insiders own 7.00% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Group 1 Automotive by 1.1% in the second quarter. Vanguard Group Inc. now owns 1,653,156 shares of the company’s stock valued at $81,600,000 after buying an additional 17,459 shares during the last quarter. Adage Capital Partners GP L.L.C. boosted its position in Group 1 Automotive by 88.0% in the second quarter. Adage Capital Partners GP L.L.C. now owns 836,125 shares of the company’s stock valued at $41,271,000 after buying an additional 391,305 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its position in Group 1 Automotive by 0.6% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 688,829 shares of the company’s stock valued at $40,427,000 after buying an additional 4,440 shares during the last quarter. State Street Corp boosted its position in Group 1 Automotive by 5.2% in the first quarter. State Street Corp now owns 615,799 shares of the company’s stock valued at $36,135,000 after buying an additional 30,167 shares during the last quarter. Finally, Lakewood Capital Management LP boosted its position in Group 1 Automotive by 62.1% in the second quarter. Lakewood Capital Management LP now owns 443,625 shares of the company’s stock valued at $21,897,000 after buying an additional 170,000 shares during the last quarter. Hedge funds and other institutional investors own 97.21% of the company’s stock.
About Group 1 Automotive
Group 1 Automotive, Inc is an operator in the automotive retail industry. The Company, through its dealerships, sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services, and sells vehicle parts.
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