HOUSTON - Group 1 Automotive, Inc. (NYSE: NYSE:GPI), a Fortune 300 company and a leading automotive retailer with 203 dealerships in the U.S. and U.K., has announced a substantial increase in its share repurchase program. The board of directors approved a new authorization that allows the company to repurchase up to $250 million of its common stock. This represents an increase of $161 million over the previous authorization.
The company has already repurchased 205,551 shares year-to-date at an average price of $264.74 per share, totaling approximately $54 million. The timing and volume of repurchases will be determined by market conditions, legal requirements, and other factors. Group 1 expects to fund these repurchases using cash generated from operations, and repurchased shares will be held as treasury stock.
In addition to the share repurchase authorization, Group 1's board has declared a quarterly dividend of $0.47 per share. This dividend is payable on June 17, 2024, to shareholders of record on June 3, 2024. The dividend aligns with the company's previously announced 4% increase in its annualized dividend rate, rising from $1.80 per share in 2023 to $1.88 per share in 2024.
Group 1 Automotive operates a considerable number of automotive dealerships and franchises across two major markets, offering a variety of automobile brands. The company's operations include the sale of new and used vehicles, vehicle financing, and the provision of maintenance services and parts.
The information in this article is based on a press release statement from Group 1 Automotive. It should be noted that forward-looking statements within the press release are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ. These statements are not guarantees of future performance.
InvestingPro Insights
Group 1 Automotive, Inc. (NYSE: GPI) has demonstrated a strong commitment to shareholder returns, as evidenced by the recent increase in its share repurchase program and the consistent rise in its dividend payout. Reflecting this commitment, an InvestingPro Tip highlights that GPI has raised its dividend for 3 consecutive years and has maintained dividend payments for 15 consecutive years, showcasing a reliable track record of returning capital to shareholders.
Analyzing the company's financial health through InvestingPro Data, GPI has a market capitalization of $3.99 billion and is trading at an attractive earnings multiple with a P/E ratio of 7.08 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 6.63. Additionally, the company's revenue growth for the same period stands at 10.34%, indicating a robust top-line performance.
Investors considering GPI should note that analysts have revised their earnings upwards for the upcoming period, suggesting potential for continued financial performance. Furthermore, the company is trading near its 52-week high, with its price at 97.35% of the peak, which may interest growth-oriented investors. For those seeking more in-depth analysis, there are additional InvestingPro Tips available for GPI, which can be explored further with a special offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The company's next earnings date is set for July 25, 2024, a key event for investors to watch as it could provide further insights into the company's operational and financial trajectory. To stay ahead with comprehensive analysis, visit InvestingPro for a complete set of tips and real-time metrics tailored to inform your investment decisions.
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