Group 1 Automotive (NYSE:GPI) Shares Gap Down on Disappointing Earnings

Group 1 Automotive, Inc. (NYSE:GPI) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $396.41, but opened at $372.06. Group 1 Automotive shares last traded at $375.2260, with a volume of 85,290 shares changing hands.

The company reported $8.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $9.36 by ($0.87). The business had revenue of $5.58 billion for 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 firm’s revenue for the quarter was up .6% compared to the same quarter last year. During the same period in the prior year, the company posted $10.02 EPS.

Group 1 Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, December 1st. Group 1 Automotive’s dividend payout ratio (DPR) is presently 7.00%.

Group 1 Automotive announced that its board has initiated a stock buyback program on Tuesday, November 11th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to repurchase up to 10.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Group 1 Automotive News Roundup

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Analysts and commentators point to above‑average financial growth and a longer‑term upside thesis for Group 1 based on margin recovery and scale benefits, which could support a rebound if execution continues. Is Group 1 Automotive (GPI) a Solid Growth Stock? 3 Reasons to Think “Yes”
• Positive Sentiment: Management highlighted a roughly $640M revenue lift from recent acquisitions and a record ~$3.6B gross profit, suggesting acquisitions and parts/service/used-vehicle strength are propping revenue and profitability long term. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Positive Sentiment: Technical analysis flags GPI as oversold after recent selling, and some notes point to analysts revising estimates higher — a setup that could produce a short‑term trend reversal if fundamentals stabilize. Group 1 Automotive (GPI) Loses 7.7% in 4 Weeks, Here’s Why a Trend Reversal May be Around the Corner
• Neutral Sentiment: Company earnings call and slide deck provide detail on strategy, UK restructuring and margin initiatives — useful for investors but not an immediate market mover absent updated guidance. Group 1 Automotive Inc (GPI) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic …
• Neutral Sentiment: Full quarterly report and PR materials are available for deeper review of segment performance and cash/debt position. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Core near‑term negative: Q4 EPS of $8.49 missed consensus ($9.36) and revenue of $5.58B missed estimates (~$5.71B); EPS is materially down from $10.02 a year ago — this earnings miss is the primary driver of today’s sell‑off. Group 1 Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: New‑vehicle sales weakness weighed on results and commentary; several outlets flagged that slower new car sales diluted overall margins despite gains in used vehicles and parts/service. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh

Analysts Set New Price Targets

A number of analysts have weighed in on GPI shares. Weiss Ratings cut shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Evercore ISI initiated coverage on Group 1 Automotive in a report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective for the company. Morgan Stanley set a $460.00 target price on shares of Group 1 Automotive in a report on Monday, December 8th. Benchmark reiterated a “hold” rating on shares of Group 1 Automotive in a research note on Friday, January 9th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Group 1 Automotive presently has an average rating of “Moderate Buy” and a consensus target price of $475.14.

Hedge Funds Weigh In On Group 1 Automotive

Institutional investors have recently bought and sold shares of the company. Salomon & Ludwin LLC purchased a new stake in shares of Group 1 Automotive in the third quarter valued at about $26,000. Signaturefd LLC raised its position in Group 1 Automotive by 54.9% in the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock worth $31,000 after acquiring an additional 28 shares in the last quarter. MAI Capital Management lifted its holdings in Group 1 Automotive by 131.3% in the second quarter. MAI Capital Management now owns 74 shares of the company’s stock valued at $32,000 after acquiring an additional 42 shares during the period. First Horizon Corp boosted its position in shares of Group 1 Automotive by 881.8% during the 4th quarter. First Horizon Corp now owns 108 shares of the company’s stock worth $42,000 after purchasing an additional 97 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC acquired a new position in shares of Group 1 Automotive during the 2nd quarter worth $43,000. 99.92% of the stock is owned by institutional investors and hedge funds.

Group 1 Automotive Price Performance

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 stock’s fifty day moving average price is $400.80 and its 200-day moving average price is $421.43. The firm has a market cap of $4.48 billion, a PE ratio of 14.19 and a beta of 0.89.

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.