AutoNation, Inc. (NYSE:AN – Get Free Report) shares hit a new 52-week low during trading on Friday . The company traded as low as $172.58 and last traded at $174.8430, with a volume of 2027156 shares trading hands. The stock had previously closed at $195.37.
Key Stories Impacting AutoNation
Here are the key news stories impacting AutoNation this week:
- Positive Sentiment: Several analysts’ price targets remain materially above the current trading level, with a reported median target of $244.50. Institutional activity was mixed, but some large funds—including AQR Capital Management, D. E. Shaw and Sixth Street Partners—added shares during the second quarter. AutoNation Stock Forecast and Price Target
- Neutral Sentiment: AutoNation continues to benefit from comparatively stronger after-sales and finance operations, but recent operating data showed retail used-vehicle sales down 8.0% year over year and total retail unit sales down 6.4%, indicating uneven demand across the business. AutoNation Morgan Stanley Conference Transcript
- Negative Sentiment: Management expects third-quarter gross profit per vehicle to decline approximately 10% sequentially, partly because of model-year changeovers. Investors interpreted the forecast as a warning of near-term earnings and margin pressure. AutoNation Cautious Conference Commentary
- Negative Sentiment: Service growth has softened, new-vehicle margins are expected to weaken and consumer affordability remains a headwind. These factors could limit revenue growth and profitability in the near term. AutoNation Service Growth and Affordability
- Negative Sentiment: Demand for electric vehicles has weakened following the expiration of federal incentives, adding pressure to the outlook. Recent insider activity also showed sales rather than purchases, though those transactions are a secondary factor compared with the operating warning. AutoNation Warning Ahead of Third-Quarter Earnings
Analyst Upgrades and Downgrades
Several research analysts have recently issued reports on the stock. Seaport Research Partners reiterated a “buy” rating and issued a $255.00 price objective on shares of AutoNation in a report on Monday, August 3rd. Wells Fargo & Company lifted their price objective on shares of AutoNation from $202.00 to $224.00 and gave the stock an “equal weight” rating in a research note on Monday, August 3rd. Barclays boosted their target price on shares of AutoNation from $255.00 to $260.00 and gave the stock an “overweight” rating in a report on Wednesday, July 15th. Northcoast Research upgraded shares of AutoNation from a “neutral” rating to a “buy” rating and set a $240.00 target price for the company in a report on Tuesday, July 14th. Finally, UBS Group reaffirmed a “buy” rating and set a $248.00 target price on shares of AutoNation in a report on Monday, August 3rd. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $250.00.
AutoNation Price Performance
The company has a debt-to-equity ratio of 2.68, a current ratio of 0.78 and a quick ratio of 0.18. The stock has a market capitalization of $5.56 billion, a price-to-earnings ratio of 7.80, a PEG ratio of 0.81 and a beta of 0.72. The stock’s 50 day simple moving average is $204.71 and its 200-day simple moving average is $197.36.
AutoNation (NYSE:AN – Get Free Report) last released its quarterly earnings data on Friday, July 31st. The company reported $5.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.48 by $0.08. The business had revenue of $6.93 billion during the quarter, compared to analyst estimates of $7 billion. AutoNation had a net margin of 2.82% and a return on equity of 31.24%. AutoNation’s quarterly revenue was down .6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.26 EPS. On average, analysts expect that AutoNation, Inc. will post 21.69 EPS for the current fiscal year.
Insider Activity at AutoNation
In other news, Director Lisa Lutoff-Perlo sold 900 shares of AutoNation stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $220.00, for a total value of $198,000.00. Following the transaction, the director owned 7,989 shares of the company’s stock, valued at $1,757,580. This trade represents a 10.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 1.40% of the company’s stock.
Institutional Trading of AutoNation
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Parkside Financial Bank & Trust lifted its stake in AutoNation by 73.9% during the second quarter. Parkside Financial Bank & Trust now owns 193 shares of the company’s stock worth $36,000 after purchasing an additional 82 shares during the period. Bessemer Group Inc. grew its stake in shares of AutoNation by 33.0% in the 1st quarter. Bessemer Group Inc. now owns 306 shares of the company’s stock valued at $59,000 after purchasing an additional 76 shares during the period. Monetary Solutions Ltd bought a new stake in shares of AutoNation in the 4th quarter valued at approximately $64,000. Global Retirement Partners LLC acquired a new position in shares of AutoNation in the 2nd quarter worth approximately $63,000. Finally, Hantz Financial Services Inc. lifted its position in shares of AutoNation by 59.4% during the 4th quarter. Hantz Financial Services Inc. now owns 400 shares of the company’s stock worth $83,000 after buying an additional 149 shares during the period. 94.62% of the stock is currently owned by institutional investors and hedge funds.
AutoNation Company Profile
AutoNation, Inc is a leading automotive retailer in the United States. The company sells new and used vehicles through a network of franchised dealerships and provides automotive services including vehicle financing, insurance products, maintenance, repair, parts, and collision-repair services.
In addition to its manufacturer-branded dealerships, AutoNation operates AutoNation USA locations focused primarily on used vehicles and offers digital tools that allow customers to research, purchase, finance, and service vehicles online.
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