Group 1 Automotive Board Approves New $250M Share Repurchase Authorization; Declares Quarterly Dividend Up From $0.45 To $0.47 Per Share
Portfolio Pulse from Benzinga Newsdesk
Group 1 Automotive, Inc. (NYSE:GPI) announced a new $250M share repurchase authorization and declared a quarterly dividend increase from $0.45 to $0.47 per share. The repurchase program was increased by $161M to the new total, with 205,551 shares already bought back at an average of $264.74 each. The dividend increase is part of a 4% rise in the annualized rate from $1.80 to $1.88 per share for 2024. Repurchases are to be funded by cash from operations and held in treasury.

May 09, 2024 | 9:42 pm
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Group 1 Automotive, Inc. (GPI) has increased its share repurchase authorization to $250M and raised its quarterly dividend from $0.45 to $0.47 per share, indicating strong financial health and commitment to returning value to shareholders.
The increase in share repurchase authorization and the dividend hike are positive signals to the market, reflecting Group 1 Automotive's strong financial position and confidence in its future prospects. These actions typically lead to a positive short-term impact on the stock price as they are seen as indicators of a company's health and its ability to generate cash. Furthermore, the repurchase of shares can reduce the overall share count, potentially increasing earnings per share (EPS) and making the stock more attractive to investors.
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