Group 1 Automotive (NYSE:GPI) Reaches New 52-Week High – Time to Buy?

Shares of Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week high on Monday . The company traded as high as $458.00 and last traded at $454.33, with a volume of 12050 shares trading hands. The stock had previously closed at $449.57.

Wall Street Analysts Forecast Growth

GPI has been the subject of several research analyst reports. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research note on Friday, November 8th. Guggenheim upped their price target on Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a research report on Thursday, November 21st. Jefferies Financial Group started coverage on Group 1 Automotive in a research report on Friday, December 13th. They set a “buy” rating and a $500.00 target price on the stock. Finally, JPMorgan Chase & Co. lowered their price objective on Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a research note on Friday, January 17th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $436.83.

Group 1 Automotive Price Performance

The firm’s 50-day moving average price is $426.42 and its 200-day moving average price is $382.52. The company has a current ratio of 1.00, a quick ratio of 0.24 and a debt-to-equity ratio of 0.91. The stock has a market capitalization of $6.06 billion, a PE ratio of 12.14 and a beta of 1.36.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings data on Wednesday, October 30th. The company reported $9.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $9.87 by $0.03. The firm had revenue of $5.22 billion for the quarter, compared to the consensus estimate of $5.06 billion. Group 1 Automotive had a net margin of 2.68% and a return on equity of 18.49%. The company’s quarterly revenue was up 11.0% on a year-over-year basis. During the same period last year, the firm earned $12.07 earnings per share. On average, equities analysts forecast that Group 1 Automotive, Inc. will post 38.29 EPS for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 2nd were paid a dividend of $0.47 per share. The ex-dividend date was Monday, December 2nd. This represents a $1.88 annualized dividend and a yield of 0.41%. Group 1 Automotive’s dividend payout ratio is presently 5.01%.

Group 1 Automotive announced that its board has authorized a stock repurchase plan on Tuesday, November 12th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to reacquire up to 9.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Group 1 Automotive news, Director Lincoln Pereira sold 6,000 shares of the stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $426.68, for a total transaction of $2,560,080.00. Following the sale, the director now directly owns 98,467 shares in the company, valued at $42,013,899.56. This represents a 5.74 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Edward Mckissic sold 79 shares of the stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total transaction of $29,546.79. Following the sale, the vice president now owns 6,259 shares in the company, valued at approximately $2,340,928.59. This trade represents a 1.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On Group 1 Automotive

A number of hedge funds and other institutional investors have recently modified their holdings of GPI. R Squared Ltd purchased a new position in shares of Group 1 Automotive in the 4th quarter valued at $30,000. Assetmark Inc. grew its position in shares of Group 1 Automotive by 51.9% in the 3rd quarter. Assetmark Inc. now owns 82 shares of the company’s stock valued at $31,000 after buying an additional 28 shares during the last quarter. Harbor Capital Advisors Inc. purchased a new position in shares of Group 1 Automotive in the 3rd quarter valued at $36,000. Avior Wealth Management LLC purchased a new position in shares of Group 1 Automotive in the 3rd quarter valued at $46,000. Finally, GAMMA Investing LLC grew its position in shares of Group 1 Automotive by 70.4% in the 4th quarter. GAMMA Investing LLC now owns 121 shares of the company’s stock valued at $51,000 after buying an additional 50 shares during the last quarter. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Group 1 Automotive Company Profile

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.