GPI Group 1 Automotive Inc

Group 1 Automotive recently divested one of its Chrysler-Dodge-Jeep-Ram dealerships. This transaction is part of a larger trend, as five Stellantis dealerships are set to change hands through various M&A deals in the automotive sector. The shifts highlight ongoing consolidation and strategic adjustments within the dealership market.

Group 1 Automotive has divested a Chrysler-Dodge-Jeep-Ram dealership as part of broader M&A activity where five Stellantis stores are changing hands. Additionally, Serra Automotive Inc. sold a Chevrolet dealership in Bartlett, Tennessee, in December. The article also touches upon various other automotive news topics, including a centennial essay on Sergio Marchionne and a roundup of discontinued models.

Wedge Capital Management L L P NC has reduced its stake in Group 1 Automotive, Inc. by 16.2%, selling 14,066 shares and retaining 72,729 shares valued at approximately $31.82 million. This move comes as other institutional investors have either increased or decreased their positions in the company. Group 1 Automotive recently reported quarterly EPS of $10.45, missing estimates, but saw revenue rise 10.7% to $5.78 billion and authorized a $500 million share buyback.

CW Advisors LLC significantly increased its stake in Group 1 Automotive, Inc. (NYSE:GPI) by 193.3% in the second quarter, now holding 43,002 shares valued at approximately $18.78 million. This comes after Group 1 Automotive authorized a $500 million share repurchase plan and declared a quarterly dividend of $0.50, despite missing EPS estimates by a small margin in their latest earnings report. Analysts currently rate the stock as a "Moderate Buy" with a consensus target price of $478.88.

Franklin Resources Inc. significantly reduced its stake in Group 1 Automotive, Inc. (NYSE:GPI) by selling 77.2% of its shares in Q2, leaving 7,898 shares. Despite this, other institutional investors like JPMorgan and Dynamic Technology Lab increased their positions, resulting in 99.92% institutional ownership. Group 1 Automotive also authorized a $500 million share buyback and declared a quarterly dividend of $0.50, while its Q2 earnings slightly missed estimates but revenue grew by 10.7% year-over-year.

This article analyzes Group 1 Automotive's valuation using Discounted Cash Flow (DCF) and Price-to-Earnings (PE) ratio approaches. The DCF model suggests the stock is slightly undervalued by 6.5%, while the PE ratio, when compared to a proprietary "Fair Ratio," indicates the company's shares are currently undervalued based on earnings potential. The article encourages investors to use "Narratives" on Simply Wall St to personalize their valuation assumptions and compare them with others.