Group 1 Automotive has been making headlines recently, as the automotive retailer’s stock continues to rise. On Friday, April 28th, shares of Group 1 Automotive opened at $223.72, reaching a new all-time high for the company. In the past twelve months, the stock’s lowest point was at $136.16 and its highest point was $242.68.
Looking at the company’s financial ratios, it currently has a current ratio of 1.03 and a quick ratio of 0.33. Its debt-to-equity ratio is 0.87, showing that it carries more debt than equity in its capital structure. Furthermore, Group 1 Automotive has a market capitalization of $3.16 billion and a P/E ratio of 4.76.
In terms of equities research analysis, multiple firms have weighed in on Group 1 Automotive’s performance as well as providing their predictions for future growth. For example, Morgan Stanley reduced their price objective on Group 1 Automotive from $142 to $134 and labeled it as an “underweight” rating back in January.
In contrast to Morgan Stanley’s assessment, StockNews.com upgraded Group 1 Automotive from a “hold” rating to a “buy” rating last month; they had been tracking the firm closely before making this decision.
JPMorgan Chase & Co recently boosted their price target on Group 1 Automotive from $220 to $230 and gave the business an “overweight” rating earlier this year too.
Insider trading activity is also noteworthy for those keeping track of developments at Group 1 Automotive: various VPs have sold quantities of stocks lately – most notably Michael David Jones – totaling over thirty-one thousand shares worth six million five hundred seventy-eight thousand one hundred fifty-four dollars ($6,578,154).
On Wednesday, April 26th – days before share prices broke records – Group 1 Automotive announced its latest quarterly earnings data. The automotive retailer’s most recent results were positive, with an earnings-per-share (EPS) of $10.93, beating the consensus estimate of $9.70 by $1.23. Group 1 Automotive noted that quarter revenue reached four billion one hundred million dollars ($4.10bn), exceeding estimates of three billion nine hundred twenty million dollars ($3.92bn).
A Closer Look at Group 1 Automotive Inc.’s Recent Developments and Future Outlook
Breaking Down the Recent Developments at Group 1 Automotive Inc.
Group 1 Automotive, Inc. (NYSE: GPI), a leading automotive retailer, has undergone some interesting changes as of late. Seaport Res Ptn, an investment firm known for providing high-quality research on various companies, recently reduced its earnings per share (EPS) estimate for the company’s Q2 2023 performance. The EPS estimated by Seaport Res Ptn analyst G. Chin is now projected to be $10.27 for the quarter, down from the previous estimate of $10.37.
While this may sound concerning to some investors and shareholders, it’s important to note that it’s not all doom and gloom for the company. In fact, the consensus estimate for Group 1 Automotive’s current full-year earnings is $38.36 per share, which is still a solid figure indicating that the company can weather any potential financial storms in the coming months.
Furthermore, Seaport Res Ptn also issued estimates for Group 1 Automotive’s Q3 2023 earnings at $9.81 EPS, Q4 2023 earnings at $8.69 EPS and FY2024 earnings at $35.20 EPS; indicating that there might be a temporary slip in performance but with time there are indications that they will bounce back stronger than ever before.
There was also good news on the dividend front as Group 1 Automotive recently declared a quarterly dividend that was paid out on March 15th of this year. Investors who were recorded as having shares of Group 1 Automotive prior to March 1st received a dividend payment of $0.45 per share – an increase from their previous payout of $0.39 per share.
The ex-dividend date was February 28th and this represents a positive turn in terms of dividends being paid out to shareholders annually with projections predicting an annualized dividend yield of around 0.80% and a low payout ratio of just 3.83%.
All in all, there’s certainly no reason for investors to hit the panic button just yet when it comes to Group 1 Automotive. With solid full-year earnings projections, shareholder-friendly dividend payouts, and a bright outlook on the horizon per the estimates provided by Seaport Res Ptn, it’s clear that Group 1 Automotive has a promising future ahead of them.