Group 1 Automotive (NYSE:GPI) Issues Earnings Results, Beats Expectations By $1.25 EPS

Group 1 Automotive (NYSE:GPI) released its earnings results on Wednesday. The company reported $10.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $8.77 by $1.25, Zacks reports. Group 1 Automotive had a net margin of 2.68% and a return on equity of 18.49%.

Group 1 Automotive Stock Performance

Shares of NYSE GPI opened at $456.91 on Wednesday. The stock has a market capitalization of $6.09 billion, a PE ratio of 12.01 and a beta of 1.36. Group 1 Automotive has a 52 week low of $255.73 and a 52 week high of $458.82. The stock has a 50 day moving average price of $428.60 and a 200 day moving average price of $384.80. 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 Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Monday, December 2nd were given a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 0.41%. The ex-dividend date was Monday, December 2nd. Group 1 Automotive’s dividend payout ratio (DPR) is currently 5.01%.

Group 1 Automotive announced that its board has initiated a share repurchase 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 shares are undervalued.

Insider Transactions at Group 1 Automotive

In other Group 1 Automotive news, Director Lincoln Pereira sold 6,000 shares of the firm’s 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 completion of the sale, the director now directly owns 98,467 shares in the company, valued at $42,013,899.56. This trade represents a 5.74 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Edward Mckissic sold 79 shares of the stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $374.01, for a total value of $29,546.79. Following the transaction, the vice president now owns 6,259 shares in the company, valued at $2,340,928.59. The trade was a 1.25 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.70% of the company’s stock.

Analyst Ratings Changes

Several brokerages have commented on GPI. JPMorgan Chase & Co. dropped their target price on shares of Group 1 Automotive from $425.00 to $420.00 and set an “overweight” rating for the company in a research report on Friday, January 17th. Guggenheim increased their target price on Group 1 Automotive from $420.00 to $442.00 and gave the company a “buy” rating in a research note on Thursday, November 21st. StockNews.com upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research report on Friday, November 8th. Finally, Jefferies Financial Group initiated coverage on shares of Group 1 Automotive in a research report on Friday, December 13th. They issued a “buy” rating and a $500.00 price target on the stock. 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.com, the company has an average rating of “Moderate Buy” and an average target price of $436.83.

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.