Group 1 Automotive (NYSE:GPI) Sets New 1-Year High After Dividend Announcement

Group 1 Automotive, Inc. (NYSE:GPI)’s share price reached a new 52-week high during mid-day trading on Tuesday following a dividend announcement from the company. The stock traded as high as $416.35 and last traded at $416.14, with a volume of 1969 shares traded. The stock had previously closed at $412.67.

The newly announced dividend which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 0.45%. The ex-dividend date of this dividend is Monday, December 2nd. Group 1 Automotive’s dividend payout ratio is currently 5.01%.

Analyst Upgrades and Downgrades

GPI has been the topic of a number of recent research reports. Bank of America reduced their price target on shares of Group 1 Automotive from $445.00 to $435.00 and set a “buy” rating on the stock in a research report on Monday, July 22nd. StockNews.com raised Group 1 Automotive from a “sell” rating to a “hold” rating in a research report on Friday, November 8th. Stephens assumed coverage on Group 1 Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $394.00 price target on the stock. Morgan Stanley raised shares of Group 1 Automotive from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $285.00 to $430.00 in a research report on Wednesday, September 25th. Finally, JPMorgan Chase & Co. upped their target price on shares of Group 1 Automotive from $420.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, November 5th. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Group 1 Automotive presently has an average rating of “Moderate Buy” and an average price target of $397.80.

Group 1 Automotive Stock Performance

The company’s fifty day simple moving average is $369.76 and its two-hundred day simple moving average is $337.08. The company has a market capitalization of $5.56 billion, a price-to-earnings ratio of 11.13, a price-to-earnings-growth ratio of 2.09 and a beta of 1.33. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.24 and a current ratio of 1.00.

Group 1 Automotive (NYSE:GPI) last issued its earnings results on Wednesday, October 30th. The company reported $9.90 earnings per share for the quarter, topping analysts’ consensus estimates of $9.87 by $0.03. Group 1 Automotive had a net margin of 2.68% and a return on equity of 18.49%. The company had revenue of $5.22 billion for the quarter, compared to analysts’ expectations of $5.06 billion. During the same period in the prior year, the company earned $12.07 earnings per share. The firm’s revenue was up 11.0% compared to the same quarter last year. Equities research analysts predict that Group 1 Automotive, Inc. will post 38.6 earnings per share for the current fiscal year.

Group 1 Automotive declared that its board has initiated a stock buyback program on Tuesday, November 12th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 9.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Activity at Group 1 Automotive

In other news, VP Edward Mckissic sold 79 shares of Group 1 Automotive stock in a transaction 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 transaction, the vice president now directly owns 6,259 shares in the company, valued at approximately $2,340,928.59. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.70% of the company’s stock.

Institutional Trading of Group 1 Automotive

Hedge funds have recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. boosted its position in shares of Group 1 Automotive by 54.2% in the first quarter. Envestnet Portfolio Solutions Inc. now owns 1,204 shares of the company’s stock worth $352,000 after buying an additional 423 shares during the period. SG Americas Securities LLC purchased a new stake in Group 1 Automotive in the 1st quarter worth approximately $1,305,000. Oppenheimer & Co. Inc. acquired a new position in shares of Group 1 Automotive in the first quarter worth $205,000. Oppenheimer Asset Management Inc. purchased a new stake in shares of Group 1 Automotive during the first quarter worth $598,000. Finally, US Bancorp DE grew its stake in Group 1 Automotive by 7.9% in the first quarter. US Bancorp DE now owns 1,926 shares of the company’s stock valued at $563,000 after purchasing an additional 141 shares in the last quarter. 99.92% of the stock is owned by hedge funds and other institutional investors.

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.