Disclosed on June 11, Daniel J. McHenry, SVP & CFO at Group 1 Automotive GPI, executed a substantial insider sell as per the latest SEC filing.
What Happened: After conducting a thorough analysis, McHenry sold 6,000 shares of Group 1 Automotive. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $2,654,120.
During Thursday’s morning session, Group 1 Automotive shares down by 0.0%, currently priced at $442.58.
Get to Know Group 1 Automotive Better
Group 1 owns and operates 39 collision centers and 260 automotive dealerships in the US and the UK, offering 35 brands of automobiles altogether. Slightly over half of the stores are in the US with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 33.5% of new-vehicle unit volume in 2024 and the UK 22.6%. Texas, Massachusetts, and California combined was 48.5%. Revenue in 2024 totaled $19.9 billion. The August 2024 Inchcape UK deal adds about $2.7 billion of annual revenue and 54 stores. The firm entered the UK in 2007 and has 116 stores and about one-third of its new vehicle unit volume there. Group 1 was founded in 1995 and is based in Houston.
Financial Milestones: Group 1 Automotive’s Journey
Revenue Growth: Over the 3 months period, Group 1 Automotive showcased positive performance, achieving a revenue growth rate of 23.15% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Key Profitability Indicators:
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Gross Margin: The company faces challenges with a low gross margin of 16.2%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Group 1 Automotive’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 9.69.
Debt Management: With a below-average debt-to-equity ratio of 1.76, Group 1 Automotive adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Overview:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.43, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 0.28 is lower than the industry average, implying a discounted valuation for Group 1 Automotive’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.73, Group 1 Automotive presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Unmasking the Significance of Insider Transactions
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Cracking Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Group 1 Automotive’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
