Group 1 Automotive (NYSE:GPI) Earns Buy Rating from Analysts at Bank of America

Bank of America initiated coverage on shares of Group 1 Automotive (NYSE:GPI) in a report released on Wednesday. The firm issued a buy rating on the stock.

Other analysts also recently issued reports about the company. JPMorgan Chase & Co. raised Group 1 Automotive from a “neutral” rating to an “overweight” rating and set a $370.00 target price for the company in a research note on Friday, February 20th. Barclays set a $470.00 price objective on shares of Group 1 Automotive in a report on Monday, February 2nd. Weiss Ratings cut shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Benchmark reaffirmed a “hold” rating on shares of Group 1 Automotive in a research note on Friday, January 9th. Finally, Morgan Stanley decreased their target price on shares of Group 1 Automotive from $460.00 to $400.00 and set an “overweight” rating on the stock in a report on Monday, March 2nd. Six research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $458.00.

Group 1 Automotive Trading Down 1.6%

Shares of Group 1 Automotive stock opened at $319.05 on Wednesday. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.08 and a quick ratio of 0.27. The stock’s 50 day simple moving average is $364.51 and its 200-day simple moving average is $405.61. The stock has a market cap of $3.81 billion, a P/E ratio of 12.76, a P/E/G ratio of 0.49 and a beta of 0.91. Group 1 Automotive has a 1-year low of $306.96 and a 1-year high of $488.39.

Group 1 Automotive (NYSE:GPI) last posted its quarterly earnings results on Thursday, January 29th. The company reported $8.49 EPS for the quarter, missing the consensus estimate of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.44% and a return on equity of 17.39%. The company had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.71 billion. During the same period in the prior year, the business posted $10.02 EPS. Group 1 Automotive’s revenue for the quarter was up .6% compared to the same quarter last year. Analysts predict that Group 1 Automotive will post 41 EPS for the current fiscal year.

Group 1 Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be given a dividend of $0.55 per share. This is a boost from Group 1 Automotive’s previous quarterly dividend of $0.50. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, March 2nd. Group 1 Automotive’s dividend payout ratio (DPR) is 8.80%.

Group 1 Automotive announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 11th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 10.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Group 1 Automotive

Large investors have recently made changes to their positions in the stock. Salomon & Ludwin LLC purchased a new stake in Group 1 Automotive in the third quarter valued at approximately $26,000. Signaturefd LLC boosted its position in shares of Group 1 Automotive by 54.9% during the fourth quarter. Signaturefd LLC now owns 79 shares of the company’s stock worth $31,000 after buying an additional 28 shares during the period. MAI Capital Management boosted its position in shares of Group 1 Automotive by 131.3% during the second quarter. MAI Capital Management now owns 74 shares of the company’s stock worth $32,000 after buying an additional 42 shares during the period. First Horizon Corp grew its stake in shares of Group 1 Automotive by 881.8% in the fourth quarter. First Horizon Corp now owns 108 shares of the company’s stock valued at $42,000 after buying an additional 97 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC acquired a new stake in shares of Group 1 Automotive in the second quarter valued at $43,000. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Group 1 Automotive

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

• Positive Sentiment: Zacks lifted its Q2 2027 EPS forecast to $8.56 (from $8.25), a small sign that Zacks sees at least one quarter of a recovery or better-than-expected seasonal performance. This is isolated versus broader cuts. MarketBeat GPI
• Neutral Sentiment: Coverage reinstatement and fresh analyst commentary have prompted renewed valuation debate — Bank of America’s coverage reinstatement and mixed analyst reactions are prompting investors to reassess multiples and the story versus peers. This is a re-rate discussion rather than new operational news. A Look At Group 1 Automotive Valuation
• Negative Sentiment: Zacks issued multiple downward revisions to near-term and full-year EPS: cuts to Q1–Q4 2026 quarters, Q3 2026, Q3/Q4 2027, and FY2026–FY2028 (FY2026 cut to ~$41.43 from $44.01; FY2027 and FY2028 also trimmed). These broad downgrades signal weaker demand or margin pressure in Zacks’ view and reduce near-term earnings visibility. Zacks Research revisions (MarketBeat)
• Negative Sentiment: Media coverage is questioning whether the recent quarterly earnings miss and leadership moves change the bull case; that uncertainty can pressure sentiment until management clarifies outlook or execution improves. Earnings miss and leadership analysis

Group 1 Automotive Company Profile

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.