Group 1 Automotive Inc. (GPI) Rating Lowered 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 research 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 a number of other reports. Buckingham Research upgraded shares of Group 1 Automotive from a “neutral” rating to a “buy” rating in a research note on Wednesday, July 20th. TheStreet upgraded shares of Group 1 Automotive from a “hold” rating to a “buy” rating in a research note on Thursday, September 15th. Seaport Global Securities initiated coverage on shares of Group 1 Automotive in a research note on Tuesday, August 9th. They issued a “neutral” rating on the stock. Finally, Goldman Sachs Group Inc. restated a “neutral” rating and issued a $61.00 target price (down from $64.00) on shares of Group 1 Automotive in a research note on Saturday, October 8th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $64.00.
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Group 1 Automotive (NYSE:GPI) traded down 3.76% during trading on Thursday, hitting $62.39. 69,906 shares of the stock traded hands. The firm has a market cap of $1.29 billion, a PE ratio of 15.68 and a beta of 1.58. Group 1 Automotive has a 12 month low of $47.31 and a 12 month high of $89.64. The firm has a 50-day moving average price of $61.33 and a 200 day moving average price of $59.10.
Group 1 Automotive (NYSE:GPI) last issued its earnings results on Thursday, July 28th. The company reported $2.16 EPS for the quarter, topping the Zacks’ consensus estimate of $2.09 by $0.07. The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.86 billion. Group 1 Automotive had a net margin of 0.82% and a return on equity of 17.97%. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.98 EPS. On average, equities analysts forecast that Group 1 Automotive will post $7.54 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Thursday, September 1st were given a $0.23 dividend. The ex-dividend date of this dividend was Tuesday, August 30th. This represents a $0.92 annualized dividend and a dividend yield of 1.42%. Group 1 Automotive’s payout ratio is presently 22.66%.
In related news, VP Peter C. Delongchamps sold 7,500 shares of the stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $61.22, for a total transaction of $459,150.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Darryl M. Burman sold 2,000 shares of the 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 sale, the vice president now directly owns 72,633 shares of the company’s stock, valued at approximately $4,278,083.70. The disclosure for this sale can be found here. 7.00% of the stock is currently owned by insiders.
A number of large investors have recently bought and sold shares of GPI. Renaissance Technologies LLC boosted its stake in Group 1 Automotive by 45.0% in the first quarter. Renaissance Technologies LLC now owns 200,600 shares of the company’s stock worth $11,773,000 after buying an additional 62,300 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Group 1 Automotive by 131.7% in the first quarter. Goldman Sachs Group Inc. now owns 219,234 shares of the company’s stock worth $12,867,000 after buying an additional 124,602 shares during the last quarter. UBS Group AG boosted its stake in Group 1 Automotive by 395.3% in the first quarter. UBS Group AG now owns 294,271 shares of the company’s stock worth $17,270,000 after buying an additional 234,855 shares during the last quarter. State Street Corp boosted its stake in Group 1 Automotive by 5.2% in the first quarter. State Street Corp now owns 615,799 shares of the company’s stock worth $36,135,000 after buying an additional 30,167 shares during the last quarter. Finally, NN Investment Partners Holdings N.V. purchased a new stake in Group 1 Automotive during the first quarter worth approximately $586,000. 97.21% of the stock is owned by institutional investors.
Group 1 Automotive Company Profile
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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