Group 1 Automotive (NYSE:GPI) Hits New 52-Week Low Following Weak Earnings

Group 1 Automotive, Inc. (NYSE:GPI) reached a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $353.21 and last traded at $354.05, with a volume of 99563 shares changing hands. The stock had previously closed at $363.16.

The company reported $8.49 EPS for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87). Group 1 Automotive had a net margin of 1.67% and a return on equity of 18.08%. The business had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.71 billion. During the same quarter last year, the company earned $10.02 earnings per share. Group 1 Automotive’s quarterly revenue was up .6% on a year-over-year basis.

Group 1 Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, December 1st. Group 1 Automotive’s payout ratio is 7.00%.

Group 1 Automotive announced that its board has authorized a stock repurchase program on Tuesday, November 11th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 10.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Group 1 Automotive News Roundup

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

• Positive Sentiment: Management highlighted record revenues and strategic progress on the earnings call, stressing revenue growth and operational initiatives that drove a company‑wide performance pickup. Group 1 Automotive Inc (GPI) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic …
• Positive Sentiment: Company expects acquisitions to lift revenue (management outlined roughly $640M of incremental revenue tied to recent deals) and reported a record ~$3.6B gross profit for the year — positive for longer‑term top‑line scale and gross‑margin dollars. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Neutral Sentiment: Company published its formal results, slide deck and conference‑call transcript; investors can review management’s guidance/comments and the presentation to assess cadence and margin drivers. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Q4 EPS missed estimates: $8.49 reported vs. ~$9.36 expected; revenue $5.58B came in below the ~$5.71B consensus. EPS declined year‑over‑year from $10.02, signaling margin and mix pressure. Group 1 Automotive (GPI) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Management and press coverage flagged that softer new‑car sales pressured results in the quarter — a cyclical headwind that could persist near term and weigh margins. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh

Analyst Upgrades and Downgrades

Several analysts recently commented on GPI shares. Weiss Ratings downgraded shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Barclays decreased their target price on shares of Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 21st. Morgan Stanley set a $460.00 price target on Group 1 Automotive in a report on Monday, December 8th. Benchmark reaffirmed a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Finally, JPMorgan Chase & Co. decreased 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 research report on Wednesday, November 5th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $475.14.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Massachusetts Financial Services Co. MA bought a new stake in shares of Group 1 Automotive during the third quarter valued at approximately $75,315,000. Norges Bank bought a new stake in Group 1 Automotive during the 2nd quarter valued at $70,561,000. Franklin Resources Inc. boosted its position in Group 1 Automotive by 968.8% during the 3rd quarter. Franklin Resources Inc. now owns 84,412 shares of the company’s stock worth $36,931,000 after acquiring an additional 76,514 shares during the period. Victory Capital Management Inc. grew its stake in shares of Group 1 Automotive by 34.8% in the third quarter. Victory Capital Management Inc. now owns 226,915 shares of the company’s stock worth $99,278,000 after purchasing an additional 58,641 shares in the last quarter. Finally, Algert Global LLC increased its holdings in shares of Group 1 Automotive by 365.9% during the third quarter. Algert Global LLC now owns 63,980 shares of the company’s stock valued at $27,992,000 after purchasing an additional 50,248 shares during the period. 99.92% of the stock is owned by institutional investors and hedge funds.

Group 1 Automotive Trading Down 2.2%

The firm has a market capitalization of $4.49 billion, a P/E ratio of 12.43 and a beta of 0.89. The business’s 50 day moving average is $401.69 and its two-hundred day moving average is $422.31. The company has a quick ratio of 0.25, a current ratio of 1.06 and a debt-to-equity ratio of 1.06.

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.