Group 1 Automotive (NYSE:GPI) Hits New 52-Week Low on Analyst Downgrade

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week low on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $410.00 to $370.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Group 1 Automotive traded as low as $331.59 and last traded at $334.74, with a volume of 152747 shares traded. The stock had previously closed at $338.40.

A number of other equities research analysts also recently commented on the stock. Evercore began coverage on shares of Group 1 Automotive in a research report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective on the stock. Weiss Ratings lowered Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Barclays set a $470.00 price target on Group 1 Automotive in a report on Monday, February 2nd. Morgan Stanley set a $460.00 price target on Group 1 Automotive in a report on Monday, December 8th. Finally, Benchmark restated a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $466.57.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of GPI. Keybank National Association OH purchased a new position in shares of Group 1 Automotive during the second quarter worth about $335,000. Prudential Financial Inc. lifted its position in Group 1 Automotive by 2.7% during the 2nd quarter. Prudential Financial Inc. now owns 25,668 shares of the company’s stock worth $11,209,000 after acquiring an additional 681 shares during the period. Y Intercept Hong Kong Ltd grew its stake in shares of Group 1 Automotive by 133.8% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 2,974 shares of the company’s stock valued at $1,299,000 after purchasing an additional 1,702 shares during the last quarter. Envestnet Asset Management Inc. increased its holdings in shares of Group 1 Automotive by 3.5% in the second quarter. Envestnet Asset Management Inc. now owns 44,751 shares of the company’s stock valued at $19,543,000 after purchasing an additional 1,505 shares during the period. Finally, Dynamic Technology Lab Private Ltd raised its stake in shares of Group 1 Automotive by 778.3% during the second quarter. Dynamic Technology Lab Private Ltd now owns 5,270 shares of the company’s stock worth $2,301,000 after purchasing an additional 4,670 shares during the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Group 1 Automotive Trading Down 1.1%

The company has a fifty day moving average of $392.76 and a two-hundred day moving average of $417.54. The company has a quick ratio of 0.25, a current ratio of 1.06 and a debt-to-equity ratio of 1.06. The stock has a market capitalization of $4.23 billion, a price-to-earnings ratio of 13.38 and a beta of 0.90.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings data on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). The firm had revenue of $5.58 billion for the quarter, compared to analysts’ expectations 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 quarterly revenue was up .6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $10.02 EPS. On average, research analysts expect that Group 1 Automotive, Inc. will post 41 EPS for the current year.

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

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.