Group 1 Automotive (NYSE:GPI) Sets New 12-Month Low on Disappointing Earnings

Shares of Group 1 Automotive, Inc. (NYSE:GPI) hit a new 52-week low during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $353.21 and last traded at $354.05, with a volume of 99563 shares changing hands. The stock had previously closed at $363.16.

The company reported $8.49 earnings per share for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). The business had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.71 billion. Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.00%. The firm’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $10.02 earnings per share.

Group 1 Automotive Announces Dividend

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

Group 1 Automotive announced that its board has authorized a stock repurchase plan on Tuesday, November 11th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 10.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

Key Headlines Impacting Group 1 Automotive

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

Several brokerages have issued reports on GPI. Barclays decreased their price target on shares of Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating for the company in a research report on Wednesday, January 21st. Morgan Stanley set a $460.00 price objective on shares of Group 1 Automotive in a report on Monday, December 8th. JPMorgan Chase & Co. decreased their price objective on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Benchmark reaffirmed a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Finally, Evercore ISI initiated coverage on Group 1 Automotive in a research note on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price objective on the stock. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $475.14.

Institutional Investors Weigh In On Group 1 Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GPI. Assetmark Inc. boosted its stake in Group 1 Automotive by 25.8% during the 2nd quarter. Assetmark Inc. now owns 122 shares of the company’s stock valued at $53,000 after purchasing an additional 25 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Group 1 Automotive by 6.1% in the second quarter. NewEdge Advisors LLC now owns 471 shares of the company’s stock valued at $206,000 after acquiring an additional 27 shares in the last quarter. Signaturefd LLC lifted its holdings in shares of 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 buying an additional 28 shares in the last quarter. Police & Firemen s Retirement System of New Jersey boosted its stake in Group 1 Automotive by 1.0% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 2,854 shares of the company’s stock valued at $1,246,000 after buying an additional 29 shares during the last quarter. Finally, Procyon Advisors LLC grew its stake in shares of Group 1 Automotive by 5.1% in the 3rd quarter. Procyon Advisors LLC now owns 595 shares of the company’s stock worth $260,000 after buying an additional 29 shares in the last quarter. 99.92% of the stock is owned by hedge funds and other institutional investors.

Group 1 Automotive Trading Down 2.3%

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 has a market cap of $4.48 billion, a PE ratio of 14.19 and a beta of 0.89. The stock has a fifty day moving average price of $400.80 and a 200 day moving average price of $421.22.

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.