Group 1 Automotive (NYSE:GPI) Sets New 12-Month High – Still a Buy?

Group 1 Automotive, Inc. (NYSE:GPI)’s stock price reached a new 52-week high on Wednesday . The company traded as high as $471.69 and last traded at $471.97, with a volume of 43326 shares. The stock had previously closed at $458.32.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on GPI shares. Guggenheim boosted their price target on shares of Group 1 Automotive from $420.00 to $442.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. JPMorgan Chase & Co. reduced their price target on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a report on Friday, January 17th. Jefferies Financial Group assumed coverage on Group 1 Automotive in a research note on Friday, December 13th. They issued a “buy” rating and a $500.00 target price on the stock. Stephens restated an “equal weight” rating and set a $460.00 price objective on shares of Group 1 Automotive in a report on Thursday, January 30th. Finally, StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a report on Friday, November 8th. Two research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $447.83.

Group 1 Automotive Price Performance

The company has a debt-to-equity ratio of 0.91, a current ratio of 1.00 and a quick ratio of 0.24. The stock’s 50 day simple moving average is $433.97 and its two-hundred day simple moving average is $391.13. The stock has a market cap of $6.26 billion, a price-to-earnings ratio of 12.80 and a beta of 1.36.

Group 1 Automotive (NYSE:GPI) last announced its earnings results on Wednesday, January 29th. The company reported $10.02 earnings per share for the quarter, beating analysts’ consensus estimates of $8.77 by $1.25. Group 1 Automotive had a return on equity of 18.25% and a net margin of 2.47%. On average, analysts forecast that Group 1 Automotive, Inc. will post 40.59 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were paid a $0.47 dividend. This represents a $1.88 annualized dividend and a yield of 0.40%. The ex-dividend date of this dividend was Monday, December 2nd. Group 1 Automotive’s payout ratio is presently 5.12%.

Group 1 Automotive declared that its Board of Directors has authorized a share buyback plan on Tuesday, November 12th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 9.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Lincoln Pereira sold 6,000 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $426.68, for a total value of $2,560,080.00. Following the sale, the director now owns 98,467 shares in the company, valued at approximately $42,013,899.56. This represents a 5.74 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. State Street Corp raised its position in shares of Group 1 Automotive by 2.1% in the third quarter. State Street Corp now owns 541,766 shares of the company’s stock valued at $207,518,000 after buying an additional 10,969 shares in the last quarter. FMR LLC lifted its holdings in shares of Group 1 Automotive by 133.0% during the 3rd quarter. FMR LLC now owns 407,930 shares of the company’s stock worth $156,253,000 after acquiring an additional 232,846 shares during the period. Geode Capital Management LLC raised its position in Group 1 Automotive by 0.7% during the third quarter. Geode Capital Management LLC now owns 305,602 shares of the company’s stock valued at $117,080,000 after purchasing an additional 1,985 shares in the last quarter. Franklin Resources Inc. raised its holdings in shares of Group 1 Automotive by 2.3% during the 3rd quarter. Franklin Resources Inc. now owns 156,627 shares of the company’s stock worth $55,701,000 after buying an additional 3,507 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Group 1 Automotive by 1.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 154,923 shares of the company’s stock worth $65,297,000 after acquiring an additional 2,000 shares in the last quarter. Institutional investors own 99.92% of the company’s stock.

About Group 1 Automotive

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services.