Group 1 Automotive (NYSE:GPI) to Repurchase $500.00 million in Outstanding Stock

Group 1 Automotive (NYSE:GPI) announced that its Board of Directors has initiated a share buyback plan on Tuesday, November 11th, RTT News reports. The company plans to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 10.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently commented on GPI. JPMorgan Chase & Co. lowered their target price on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Zacks Research cut Group 1 Automotive from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 13th. Weiss Ratings reissued a “buy (b)” rating on shares of Group 1 Automotive in a report on Wednesday, October 8th. Bank of America decreased their price target on Group 1 Automotive from $560.00 to $545.00 and set a “buy” rating on the stock in a research report on Wednesday, September 10th. Finally, Wall Street Zen downgraded Group 1 Automotive from a “buy” rating to a “hold” rating in a research note on Saturday, August 30th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Group 1 Automotive has an average rating of “Moderate Buy” and a consensus price target of $478.88.

Group 1 Automotive Price Performance

Shares of GPI traded down $9.84 during midday trading on Tuesday, hitting $379.86. The company’s stock had a trading volume of 154,422 shares, compared to its average volume of 181,975. The company has a quick ratio of 0.24, a current ratio of 1.06 and a debt-to-equity ratio of 1.06. Group 1 Automotive has a one year low of $355.91 and a one year high of $490.09. The stock has a market capitalization of $4.80 billion, a price-to-earnings ratio of 13.29, a price-to-earnings-growth ratio of 1.09 and a beta of 0.91. The company’s fifty day simple moving average is $435.28 and its two-hundred day simple moving average is $436.35.

Group 1 Automotive (NYSE:GPI) last announced its quarterly earnings results on Tuesday, October 28th. The company reported $10.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.64 by ($0.19). The company had revenue of $5.78 billion for the quarter, compared to the consensus estimate of $5.67 billion. Group 1 Automotive had a net margin of 1.67% and a return on equity of 18.08%. The company’s revenue for the quarter was up 10.7% compared to the same quarter last year. During the same period last year, the firm posted $9.90 earnings per share. As a group, equities analysts expect that Group 1 Automotive will post 41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Lincoln Pereira sold 7,000 shares of the firm’s stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $469.34, for a total transaction of $3,285,380.00. Following the completion of the transaction, the director directly owned 82,967 shares of the company’s stock, valued at $38,939,731.78. This trade represents a 7.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 2.10% of the stock is owned by insiders.

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.