GPI stock: buy or sell?

GPI stock price: $86.16 0.53% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Group 1 Automotive ended today at $86.16 and grew a slightly fine 0.53%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean GPI will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is GPI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-2Morgan Stanleyn/aOverweight
2019-5-6Morgan StanleyEqual WeightOverweight
2019-4-16Morgan StanleyEqual WeightEqual Weight
2019-3-4Goldman Sachs GroupNeutralBuy
2019-2-19JPMorgan Chase & Co.n/aOverweight
2019-2-14Morgan Stanleyn/aHold
2019-2-13Seaport Global Securitiesn/aBuy

GPI stock analysis

Daily outlook

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%).

GPI stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $76.00

Predicting 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:
GPI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-2Morgan StanleyRaises Target$95.00$104.009.5%
2019-4-16Morgan StanleyRaises Target$55.00$67.0021.8%
2019-3-4Goldman Sachs GroupUpgrades$67.00$77.0014.9%
2019-2-19JPMorgan Chase & Co.Initiatesn/a$77.00-
2019-2-14Morgan StanleySet Price Targetn/a$55.00-
(in average)$72.30$76.005.0%
The price prediction for Group 1 Automotive stock is $76.00, moving in a range between $104.00 and $55.00. In average, analysts' outlook on GPI price forecast is positive, upgrading the target by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Group 1 Automotive disappointed analysts on February when it reported an Earnings per Share (EPS) of $2.31 when the analysts' forecast was $2.45.
GPI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a3.43n/a
2017-Q32017-10-261.762.2326.7%
2017-Q42018-02-081.92.1111.1%
2018-Q12018-04-261.561.79.0%
2018-Q22018-07-262.182.4512.4%
2018-Q32018-10-252.392.473.3%
2018-Q42019-02-052.452.31-5.7%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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%.

GPI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,920 M-$109 M1.2%-
2014$9,938 M11.41%$93 M0.9%-14.70%
2015$10,633 M6.99%$94 M0.9%1.07%
2016$10,888 M2.40%$147 M1.4%56.45%
2017$11,124 M2.17%$213 M1.9%45.13%
2018$11,601 M4.29%$158 M1.4%-26.08%

Quarterly financial results

Group 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%.
GPI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,670 M-$38 M1.4%-
2017-Q3$3,020 M13.11%$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 M2.92%$56 M1.9%57.66%
2018-Q3$2,889 M-1.85%$35 M1.2%-38.41%
2018-Q4$2,909 M0.68%$31 M1.1%-11.67%
2019-Q1$2,808 M-3.45%$39 M1.4%25.82%

Group 1 Automotive ownership

When 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:

GPIABGANCPRTCRMT
Market cap$1.6 B$1.9 B$4.5 B$18.9 B$619.0 M
Total shares18.6 M19.4 M89.1 M229.1 M6.7 M
Float shares15.7 M17.2 M60.0 M200.5 M6.2 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 selling0.0%0.0%0.0%0.0%0.0%

GPI summary

Friday, September 20th, 2019
Open$85.76
Close$86.16
Day range$85.15 - $86.91
Previous close$85.71
Session gain0.53%
Average true range$2.88
50d mov avg$81.25
100d mov avg$79.32
200d mov avg$70.01
Daily patternlt01a
Weekly pattern

Group 1 Automotive performance

Stocks 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:
Stock3m6m12m
GPIGroup 1 Automotiv...11.33%43.82%23.47%
ABGAsbury Automotive22.92%50.23%39.09%
ANAutoNation18.79%50.46%13.79%
CPRTCopart11.69%39.38%57.06%
CRMTAmerica's Car...8.70%8.15%19.54%
KMXCarMax-1.18%37.32%8.26%
LADLithia Motors9.38%52.14%50.58%
PAGPenske Automotive-1.93%9.46%-5.82%
RUSHARush Enterprises11.02%-3.34%-5.83%
SAHSonic Automotive27.54%109.67%40.50%

Group 1 Automotive competitors

We chose a few stocks to conform a list of Group 1 Automotive competitors to watch if you are interested in investing in GPI: