Fintel reports that on July 27, 2023, Benchmark reiterated coverage of Group 1 Automotive (NYSE:GPI) with a Buy recommendation.
Analyst Price Forecast Suggests 18.02% Upside
As of July 6, 2023, the average one-year price target for Group 1 Automotive is 297.64. The forecasts range from a low of 135.34 to a high of $451.50. The average price target represents an increase of 18.02% from its latest reported closing price of 252.19.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Group 1 Automotive is 16,235MM, a decrease of 4.05%. The projected annual non-GAAP EPS is 39.74.
Group 1 Automotive Declares $0.45 Dividend
On May 17, 2023 the company declared a regular quarterly dividend of $0.45 per share ($1.80 annualized). Shareholders of record as of June 1, 2023 received the payment on June 15, 2023. Previously, the company paid $0.45 per share.
At the current share price of $252.19 / share, the stock's dividend yield is 0.71%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.09%, the lowest has been 0.66%, and the highest has been 2.99%. The standard deviation of yields is 0.44 (n=205).
The current dividend yield is 0.86 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.04. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
What is the Fund Sentiment?
There are 686 funds or institutions reporting positions in Group 1 Automotive. This is a decrease of 13 owner(s) or 1.86% in the last quarter. Average portfolio weight of all funds dedicated to GPI is 0.25%, an increase of 11.37%. Total shares owned by institutions decreased in the last three months by 0.71% to 17,175K shares. 
The put/call ratio of GPI is 0.15, indicating a bullish outlook.
What are Other Shareholders Doing?
IJR - iShares Core S&P Small-Cap ETF holds 1,062K shares representing 7.74% ownership of the company. In it's prior filing, the firm reported owning 1,080K shares, representing a decrease of 1.74%. The firm increased its portfolio allocation in GPI by 19.88% over the last quarter.
Envestnet Asset Management holds 493K shares representing 3.59% ownership of the company. In it's prior filing, the firm reported owning 14K shares, representing an increase of 97.06%. The firm decreased its portfolio allocation in GPI by 2.27% over the last quarter.
Manufacturers Life Insurance Company, The holds 484K shares representing 3.53% ownership of the company. In it's prior filing, the firm reported owning 489K shares, representing a decrease of 1.01%. The firm increased its portfolio allocation in GPI by 11.32% over the last quarter.
Macquarie Group holds 430K shares representing 3.13% ownership of the company. In it's prior filing, the firm reported owning 429K shares, representing an increase of 0.17%. The firm increased its portfolio allocation in GPI by 26.48% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 415K shares representing 3.02% ownership of the company. In it's prior filing, the firm reported owning 420K shares, representing a decrease of 1.25%. The firm increased its portfolio allocation in GPI by 14.48% over the last quarter.
Group 1 Automotive Background Information
(This description is provided by the company.)
Group 1 Automotive Inc. owns and operates 184 automotive dealerships, 237 franchises, and 49 collision centers in the United States, the United Kingdom and Brazil that offer 31 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Additional reading:
- Same Store (a non-GAAP measure)
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- Second Amended and Restated Certificate of Incorporation of Group 1 Automotive, Inc.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
