AutoNation (NYSE:AN) Upgraded by JPMorgan Chase & Co. to “Overweight” Rating

AutoNation (NYSE:AN) was upgraded by research analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a research report issued on Friday,Benzinga reports. The firm presently has a $235.00 price objective on the stock. JPMorgan Chase & Co.‘s target price would indicate a potential upside of 9.50% from the company’s current price.

Several other analysts have also commented on the stock. Weiss Ratings restated a “buy (b)” rating on shares of AutoNation in a report on Monday, December 29th. Citigroup raised their target price on AutoNation from $265.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, October 30th. Barclays assumed coverage on AutoNation in a research note on Tuesday, November 11th. They issued an “overweight” rating and a $250.00 price target on the stock. Evercore ISI raised their price objective on AutoNation from $240.00 to $300.00 and gave the company an “outperform” rating in a research report on Monday, November 24th. Finally, Morgan Stanley boosted their target price on shares of AutoNation from $225.00 to $233.00 and gave the company an “overweight” rating in a report on Monday, December 8th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $244.22.

AutoNation Stock Performance

Shares of AN stock opened at $214.62 on Friday. The firm has a market capitalization of $7.83 billion, a price-to-earnings ratio of 12.62 and a beta of 0.88. The stock has a fifty day moving average of $208.18 and a 200 day moving average of $209.64. AutoNation has a 52 week low of $148.33 and a 52 week high of $228.92. The company has a quick ratio of 0.20, a current ratio of 0.79 and a debt-to-equity ratio of 1.93.

AutoNation (NYSE:AN) last issued its quarterly earnings data on Thursday, October 23rd. The company reported $5.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.85 by $0.16. AutoNation had a net margin of 2.38% and a return on equity of 31.84%. The business had revenue of $7.04 billion for the quarter, compared to the consensus estimate of $6.74 billion. During the same period in the previous year, the firm earned $4.02 EPS. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. As a group, research analysts expect that AutoNation will post 18.15 earnings per share for the current year.

AutoNation declared that its Board of Directors has initiated a share buyback plan on Friday, October 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 13.7% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On AutoNation

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in AutoNation by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 3,176,626 shares of the company’s stock worth $694,950,000 after purchasing an additional 34,153 shares in the last quarter. Brave Warrior Advisors LLC raised its holdings in AutoNation by 7.5% in the second quarter. Brave Warrior Advisors LLC now owns 1,214,510 shares of the company’s stock worth $241,262,000 after buying an additional 84,455 shares during the last quarter. Invesco Ltd. lifted its stake in shares of AutoNation by 11.2% in the third quarter. Invesco Ltd. now owns 907,163 shares of the company’s stock worth $198,460,000 after buying an additional 91,232 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of AutoNation by 10.5% in the third quarter. AQR Capital Management LLC now owns 697,927 shares of the company’s stock worth $151,967,000 after buying an additional 66,183 shares in the last quarter. Finally, Holocene Advisors LP grew its holdings in shares of AutoNation by 38.3% during the third quarter. Holocene Advisors LP now owns 548,677 shares of the company’s stock valued at $120,034,000 after buying an additional 151,966 shares during the last quarter. 94.62% of the stock is currently owned by institutional investors.

About AutoNation

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.