Conifer Management, L.L.C. Purchases 57,159 Shares of Group 1 Automotive (NYSE:GPI) Stock

Group 1 Automotive, Inc. (NYSE:GPI) major shareholder Conifer Management, L.L.C. acquired 57,159 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was purchased at an average cost of $300.15 per share, with a total value of $17,156,273.85. Following the completion of the transaction, the insider owned 1,362,640 shares in the company, valued at $408,996,396. The trade was a 4.38% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Large shareholders that own at least 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 Thursday, September 3rd, Conifer Management, L.L.C. bought 83,121 shares of Group 1 Automotive stock. The shares were acquired at an average cost of $282.63 per share, for a total transaction of $23,492,488.23.
• On Wednesday, September 2nd, Conifer Management, L.L.C. purchased 26,561 shares of Group 1 Automotive stock. The stock was acquired at an average price of $276.03 per share, for a total transaction of $7,331,632.83.
• On Tuesday, September 1st, Conifer Management, L.L.C. purchased 3,539 shares of Group 1 Automotive stock. The stock was acquired at an average cost of $269.66 per share, with a total value of $954,326.74.

Group 1 Automotive Price Performance

Shares of NYSE GPI opened at $287.57 on Thursday. Group 1 Automotive, Inc. has a fifty-two week low of $249.54 and a fifty-two week high of $488.39. The business has a 50 day moving average price of $289.34 and a two-hundred day moving average price of $312.30. The company has a quick ratio of 0.25, a current ratio of 1.02 and a debt-to-equity ratio of 1.03. The firm has a market cap of $3.43 billion, a PE ratio of 11.98, a price-to-earnings-growth ratio of 0.85 and a beta of 0.82.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings data on Thursday, July 30th. The company reported $9.61 earnings per share (EPS) for the quarter, missing the consensus estimate 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 business had revenue of $5.39 billion for the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter in the prior year, the firm earned $10.82 earnings per share. Group 1 Automotive’s revenue for the quarter was down 5.6% compared to the same quarter last year. Sell-side analysts expect that Group 1 Automotive, Inc. will post 38.96 earnings per share for the current fiscal year.

Group 1 Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, September 1st. Group 1 Automotive’s payout ratio is 9.16%.

Trending Headlines about Group 1 Automotive

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

• Positive Sentiment: Major shareholder increases GPI stake: Conifer Management purchased 57,159 shares at an average of $300.15, worth approximately $17.2 million, increasing its ownership by 4.38% to 1.36 million shares. It also bought 83,121 shares at an average of $282.63, a purchase valued at approximately $23.5 million and representing a 6.80% increase in its position. The buying signals confidence from a significant shareholder. Conifer Management share purchases
• Neutral Sentiment: New senior notes priced: Group 1 priced $1.25 billion of senior unsecured notes—$625 million due in 2032 at 6.250% and $625 million due in 2035 at 6.625%. The proceeds may provide capital for corporate needs or growth, but the transaction’s impact will depend on how the funds are used. Group 1 Automotive senior notes pricing
• Negative Sentiment: Financing adds leverage and interest expense: The debt issuance comes as GPI already reports a debt-to-equity ratio of 1.03 and weak liquidity ratios. Annual coupon payments on the new notes will total roughly $80.5 million, potentially pressuring future earnings and cash flow.
• Neutral Sentiment: One cited article concerns Lithia Motors, not GPI: Lithia’s record quarter, dividend increase and expanded buybacks may support sentiment toward auto retailers generally, but it does not provide a direct fundamental update for Group 1 Automotive. Lithia’s record quarter

Hedge Funds Weigh In On Group 1 Automotive

A number of hedge funds have recently added to or reduced their stakes in GPI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Group 1 Automotive by 3.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,766 shares of the company’s stock valued at $2,966,000 after purchasing an additional 227 shares during the last quarter. Millennium Management LLC raised its holdings in shares of Group 1 Automotive by 20.3% during the first quarter. Millennium Management LLC now owns 37,028 shares of the company’s stock worth $14,143,000 after purchasing an additional 6,239 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Group 1 Automotive in the 1st quarter worth about $229,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Group 1 Automotive by 6.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 41,872 shares of the company’s stock worth $15,993,000 after buying an additional 2,452 shares during the last quarter. Finally, American Century Companies Inc. boosted its holdings in shares of Group 1 Automotive by 46.7% in the 2nd quarter. American Century Companies Inc. now owns 2,753 shares of the company’s stock valued at $1,202,000 after buying an additional 877 shares during the period. Institutional investors and hedge funds own 99.92% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Morgan Stanley reiterated an “equal weight” rating and set a $300.00 price objective (down from $400.00) on shares of Group 1 Automotive in a research note on Friday, August 7th. Weiss Ratings lowered shares of Group 1 Automotive from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, August 17th. Evercore set a $360.00 price target on shares of Group 1 Automotive in a research report on Tuesday, August 4th. JPMorgan Chase & Co. downgraded Group 1 Automotive from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $380.00 to $320.00 in a research note on Friday, July 31st. Finally, Barclays lowered their price objective on Group 1 Automotive from $435.00 to $365.00 and set an “overweight” rating for the company in a report on Wednesday, August 19th. Five investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $373.38.

About Group 1 Automotive

Group 1 Automotive, Inc (NYSE: GPI) is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.