GPI stock: buy or sell?
September 20th, 2019
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. It sells new and used cars, light trucks, and vehicle parts; arranges vehicle financing; sells service and insurance contracts; and provides automotive maintenance and repair services.
Should I buy GPI stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Group 1 Automotive stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Group 1 Automotive stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we gathered 7 ratings published for GPI stock in the last month. The general sentiment of these ratings is bullish for GPI stock, with 5 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-6||Morgan Stanley||Equal Weight||Overweight|
|2019-4-16||Morgan Stanley||Equal Weight||Equal Weight|
|2019-3-4||Goldman Sachs Group||Neutral||Buy|
|2019-2-19||JPMorgan Chase & Co.||n/a||Overweight|
|2019-2-13||Seaport Global Securities||n/a||Buy|
GPI stock analysis
Group 1 Automotive grew a slightly fine 0.53% and closed at $86.16.
Group 1 Automotive shares grew 0.53% to $86.16 today. On May, SMA100d and SMA200d crossed up triggering a rise of 14.56%. For the last 11 days when GPI stock price broke up the SMA100d line, it gained $9.04 (11.72%).
After boosting an amazing 11.21% in a week last week, Group 1 Automotive closed this week at $86.16 and declined a lame -0.81%. By mid August GPI plunged a dreadful -7.39% in just one week.
Since SMA20d and SMA40w crossed up early May, GPI price climbed $8.71 per share (11.25%). Since late March when GPI stock price broke up the SMA40w line, it gained $26.25 (43.82%).
GPI stock price history
GPI IPO was on October 30th, 1997 at $10.64 per share1. Since then, GPI stock grew a 709.80%, with an average of 33.80% per year. If you had invested $1,000 in GPI stock in 1997, it would worth $7,098.00 today.
1: Adjusted price after possible price splits or reverse-splits.
GPI stock historical price chart
GPI stock reached 52-week highs on July at $89.52, and all-time highs 2015-08-03 with a price of 91.59.
GPI stock price target is $76.00Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' GPI stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 5 price targets for GPI stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-2||Morgan Stanley||Raises Target||$95.00||$104.00||9.5%|
|2019-4-16||Morgan Stanley||Raises Target||$55.00||$67.00||21.8%|
|2019-3-4||Goldman Sachs Group||Upgrades||$67.00||$77.00||14.9%|
|2019-2-19||JPMorgan Chase & Co.||Initiates||n/a||$77.00||-|
|2019-2-14||Morgan Stanley||Set Price Target||n/a||$55.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareGroup 1 Automotive disappointed analysts on February when it reported an Earnings per Share (EPS) of $2.31 when the analysts' forecast was $2.45.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Group 1 Automotive annual sales grew a beatiful 4.29% to $11,601.40 M USD from $11,123.70 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) stayed steady a -0.56% to 1.36%.
|2013||$8,920 M||-||$109 M1.2%||-|
|2014||$9,938 M||11.41%||$93 M0.9%||-14.70%|
|2015||$10,633 M||6.99%||$94 M0.9%||1.07%|
|2016||$10,888 M||2.40%||$147 M1.4%||56.45%|
|2017||$11,124 M||2.17%||$213 M1.9%||45.13%|
|2018||$11,601 M||4.29%||$158 M1.4%||-26.08%|
Quarterly financial resultsGroup 1 Automotive reported $2,908.81 million in sales for 2018-Q4, a 0.68% up compared to previous quarter. Reported quarter income marked $30.72 million with a profit margin of 1.06%. Profit margin remained constant a -0.15% compared to previous quarter when profit margin was 1.20%. When comparing turnover to same quarter last year, Group 1 Automotive sales marked a tight movement and remained stable a -0.40%.
|2017-Q2||$2,670 M||-||$38 M1.4%||-|
|2017-Q3||$3,020 M||13.11%||$29 M1.0%||-23.53%|
|2017-Q4||$2,920 M||-3.30%||$110 M3.8%||282.84%|
|2018-Q1||$2,860 M||-2.07%||$36 M1.3%||-67.59%|
|2018-Q2||$2,943 M||2.92%||$56 M1.9%||57.66%|
|2018-Q3||$2,889 M||-1.85%||$35 M1.2%||-38.41%|
|2018-Q4||$2,909 M||0.68%||$31 M1.1%||-11.67%|
|2019-Q1||$2,808 M||-3.45%||$39 M1.4%||25.82%|
Group 1 Automotive ownershipWhen you are planning to buy a stock, it's worth to check its ownership structure.
Group 1 Automotive shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 6.76% of all shares.
Bearish positions for GPI stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Group 1 Automotive:
|Market cap||$1.6 B||$1.9 B||$4.5 B||$18.9 B||$619.0 M|
|Total shares||18.6 M||19.4 M||89.1 M||229.1 M||6.7 M|
|Float shares||15.7 M||17.2 M||60.0 M||200.5 M||6.2 M|
|- Institutional holdings (%)||106.4%||109.4%||87.1%||86.9%||74.9%|
|- Insider holdings (%)||6.8%||2.2%||13.6%||12.9%||8.2%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$85.15 - $86.91|
|Average true range||$2.88|
|50d mov avg||$81.25|
|100d mov avg||$79.32|
|200d mov avg||$70.01|
Group 1 Automotive performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Group 1 Automotive to Asbury Automotive, AutoNation, Copart, America's Car-Mart, CarMax, Lithia Motors, Penske Automotive, Rush Enterprises and Sonic Automotive:
|GPIGroup 1 Automotiv...||11.33%||43.82%||23.47%|