Group 1 Automotive (NYSE:GPI) Major Shareholder Purchases $18,787,488.00 in Stock

Group 1 Automotive, Inc. (NYSE:GPI) major shareholder Conifer Management, L.L.C. purchased 75,756 shares of Group 1 Automotive stock in a transaction dated Thursday, September 24th. The stock was bought at an average price of $248.00 per share, with a total value of $18,787,488.00. Following the acquisition, the insider directly owned 1,588,046 shares of the company’s stock, valued at approximately $393,835,408. This trade represents a 5.01% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Large shareholders that own more than 10% of a company’s shares are required to disclose their transactions with the SEC.

Conifer Management, L.L.C. also recently made the following trade(s):

• On Monday, September 28th, Conifer Management, L.L.C. acquired 133,472 shares of Group 1 Automotive stock. The shares were bought at an average price of $243.58 per share, for a total transaction of $32,511,109.76.
• On Wednesday, September 30th, Conifer Management, L.L.C. acquired 71,592 shares of Group 1 Automotive stock. The shares were bought at an average price of $242.03 per share, for a total transaction of $17,327,411.76.
• On Tuesday, September 29th, Conifer Management, L.L.C. acquired 68,648 shares of Group 1 Automotive stock. The stock was bought at an average cost of $239.48 per share, for a total transaction of $16,439,823.04.
• On Friday, September 25th, Conifer Management, L.L.C. bought 50,532 shares of Group 1 Automotive stock. The stock was bought at an average cost of $252.06 per share, with a total value of $12,737,095.92.
• On Friday, September 18th, Conifer Management, L.L.C. bought 37,650 shares of Group 1 Automotive stock. The shares were purchased at an average price of $249.88 per share, with a total value of $9,407,982.00.
• On Thursday, September 17th, Conifer Management, L.L.C. purchased 28,000 shares of Group 1 Automotive stock. The stock was purchased at an average cost of $266.06 per share, for a total transaction of $7,449,680.00.
• On Thursday, September 10th, Conifer Management, L.L.C. purchased 36,647 shares of Group 1 Automotive stock. The stock was purchased at an average price of $280.86 per share, for a total transaction of $10,292,676.42.
• On Wednesday, September 9th, Conifer Management, L.L.C. acquired 47,353 shares of Group 1 Automotive stock. The shares were purchased at an average cost of $282.48 per share, with a total value of $13,376,275.44.
• On Friday, September 4th, Conifer Management, L.L.C. acquired 57,159 shares of Group 1 Automotive stock. The shares were purchased at an average price of $300.15 per share, with a total value of $17,156,273.85.
• On Thursday, September 3rd, Conifer Management, L.L.C. acquired 83,121 shares of Group 1 Automotive stock. The shares were purchased at an average price of $282.63 per share, with a total value of $23,492,488.23.

Group 1 Automotive Trading Up 0.3%

NYSE GPI opened at $241.54 on Thursday. The stock has a market capitalization of $2.88 billion, a price-to-earnings ratio of 10.06, a PEG ratio of 0.73 and a beta of 0.82. The stock’s 50 day moving average price is $275.01 and its two-hundred day moving average price is $305.30. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02. Group 1 Automotive, Inc. has a 52 week low of $235.11 and a 52 week high of $461.27.

Group 1 Automotive (NYSE:GPI) last released its quarterly earnings results on Thursday, July 30th. The company reported $9.61 earnings per share for the quarter, missing analysts’ consensus estimates of $10.60 by ($0.99). Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%.The firm had revenue of $5.39 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same period last year, the company earned $10.82 EPS. The company’s revenue was down 5.6% compared to the same quarter last year. As a group, analysts anticipate that Group 1 Automotive, Inc. will post 38.96 earnings per share for the current fiscal year.

Group 1 Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were given a $0.55 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $2.20 dividend on an annualized basis and a yield of 0.9%. Group 1 Automotive’s dividend payout ratio (DPR) is 9.16%.

Group 1 Automotive News Roundup

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Conifer Management purchased 133,472 GPI shares for approximately $32.5 million on September 28, followed by purchases of 68,648 shares worth $16.4 million on September 29 and 71,592 shares worth $17.3 million on September 30. The transactions increased Conifer’s reported ownership to approximately 1.91 million shares. SEC insider transaction filing
• Positive Sentiment: The purchases extend a sustained buying campaign by Conifer, which has acquired more than $180 million of GPI stock in disclosed transactions since early September. Such concentrated buying by a major shareholder can signal confidence that the shares are undervalued or that the company’s long-term outlook is attractive. Conifer Management insider buying report
• Neutral Sentiment: Sell-side analysts currently have a consensus “Hold” rating. Five analysts rate GPI a Buy, three rate it Hold and two rate it Sell. The consensus price target of $360.25 implies substantial potential upside, but recent target reductions and cautious ratings indicate limited near-term conviction. Analyst Hold rating report
• Negative Sentiment: Recent quarterly results missed expectations: EPS was $9.61 versus the $10.60 consensus estimate, while revenue of $5.39 billion fell short of the $5.66 billion forecast and declined 5.6% year over year. EPS also decreased from $10.82 in the prior-year quarter, highlighting pressure on automotive demand and profitability.
• Negative Sentiment: Several firms have downgraded or lowered their outlook, including Zacks Research and Weiss Ratings, while Morgan Stanley reduced its price target to $300. These actions reinforce concerns about earnings momentum despite GPI’s relatively low valuation.

Wall Street Analysts Forecast Growth

GPI has been the topic of several analyst reports. Barclays cut their price target on shares of Group 1 Automotive from $435.00 to $365.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 19th. Evercore set a $360.00 target price on Group 1 Automotive in a research report on Tuesday, August 4th. JPMorgan Chase & Co. lowered Group 1 Automotive from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $380.00 to $320.00 in a report on Friday, July 31st. Seaport Research Partners set a $420.00 price target on Group 1 Automotive in a research report on Monday, August 3rd. Finally, Benchmark restated a “buy” rating on shares of Group 1 Automotive in a research note on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $360.25.

Institutional Trading of Group 1 Automotive

A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Group 1 Automotive during the 2nd quarter valued at $593,420,000. Conifer Management L.L.C. acquired a new position in shares of Group 1 Automotive in the second quarter valued at $281,561,390. Norges Bank acquired a new position in shares of Group 1 Automotive in the fourth quarter valued at $98,125,000. Lakewood Capital Management LP bought a new position in shares of Group 1 Automotive in the second quarter valued at about $72,098,000. Finally, The Manufacturers Life Insurance Company bought a new position in shares of Group 1 Automotive in the second quarter valued at about $57,174,000. Institutional investors and hedge funds own 99.92% of the company’s stock.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer that operates franchised automobile dealerships. The company sells new and used vehicles from a range of manufacturers and provides related automotive services, including vehicle maintenance and repairs, parts and accessories, financing, and insurance products.

Founded in 1997 and headquartered in Houston, Texas, Group 1 Automotive serves customers through dealership operations in the United States and the United Kingdom, as well as other international markets.