Asbury Automotive Group, Inc. (NYSE:ABG) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts give Asbury Automotive a consensus recommendation of Hold from eight brokerages (1 sell, 5 hold, 2 buy) with an average 12‑month target price of $242.29.
• The company slightly missed quarterly EPS ($6.67 vs. $6.70) and revenue ($4.68B vs. $4.93B); the stock trades around $204.22, below its 200‑day moving average and with a P/E of 8.14.
• Insider Director B. Christopher Disantis purchased 500 shares in March, and several institutional investors materially increased their stakes, signaling renewed investor interest.

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) has earned a consensus recommendation of "Hold" from the eight brokerages that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and two have assigned a buy recommendation to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $242.2857.

Several equities analysts recently issued reports on ABG shares. JPMorgan Chase & Co. raised their price target on Asbury Automotive Group from $235.00 to $240.00 and gave the company an "underweight" rating in a report on Friday, March 20th. Barclays increased their target price on Asbury Automotive Group from $230.00 to $235.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 7th. Stephens cut their target price on Asbury Automotive Group from $277.00 to $254.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 8th. Citigroup cut their target price on Asbury Automotive Group from $260.00 to $212.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 8th. Finally, Weiss Ratings lowered Asbury Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, February 23rd.

Asbury Automotive Group Price Performance

Asbury Automotive Group stock opened at $204.22 on Friday. The business's 50-day simple moving average is $206.95 and its 200 day simple moving average is $227.30. The stock has a market cap of $3.94 billion, a price-to-earnings ratio of 8.14, a P/E/G ratio of 1.01 and a beta of 0.80. Asbury Automotive Group has a 12-month low of $184.61 and a 12-month high of $274.50. The company has a quick ratio of 0.35, a current ratio of 0.95 and a debt-to-equity ratio of 0.79.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The company reported $6.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.70 by ($0.03). The firm had revenue of $4.68 billion during the quarter, compared to the consensus estimate of $4.93 billion. Asbury Automotive Group had a net margin of 2.73% and a return on equity of 14.51%. Asbury Automotive Group's revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $7.26 EPS. As a group, research analysts anticipate that Asbury Automotive Group will post 26.28 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director B. Christopher Disantis bought 500 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were purchased at an average price of $202.30 per share, with a total value of $101,150.00. Following the completion of the purchase, the director owned 5,400 shares of the company's stock, valued at $1,092,420. This represents a 10.20% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.75% of the company's stock.

Hedge Funds Weigh In On Asbury Automotive Group

Hedge funds have recently added to or reduced their stakes in the stock. Mitsubishi UFJ Trust & Banking Corp lifted its stake in Asbury Automotive Group by 631.4% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 7,036 shares of the company's stock valued at $1,720,000 after buying an additional 6,074 shares during the period. American Century Companies Inc. raised its position in shares of Asbury Automotive Group by 261.7% during the third quarter. American Century Companies Inc. now owns 159,645 shares of the company's stock worth $39,025,000 after purchasing an additional 115,504 shares during the period. SG Americas Securities LLC raised its position in shares of Asbury Automotive Group by 1,570.2% during the fourth quarter. SG Americas Securities LLC now owns 9,086 shares of the company's stock worth $2,113,000 after purchasing an additional 8,542 shares during the period. Magnolia Group LLC raised its position in shares of Asbury Automotive Group by 18.7% during the third quarter. Magnolia Group LLC now owns 282,623 shares of the company's stock worth $69,087,000 after purchasing an additional 44,500 shares during the period. Finally, Public Sector Pension Investment Board raised its position in shares of Asbury Automotive Group by 14.4% during the third quarter. Public Sector Pension Investment Board now owns 76,656 shares of the company's stock worth $18,739,000 after purchasing an additional 9,632 shares during the period.

About Asbury Automotive Group

Asbury Automotive Group, Inc NYSE: ABG is one of the largest automotive retailers in the United States. Headquartered in Duluth, Georgia, the company operates a network of franchised dealerships representing a diverse portfolio of automotive brands. Its core business activities include the sale of new and pre-owned vehicles, as well as the provision of vehicle finance, insurance and protection products to retail customers.

In addition to retail sales, Asbury offers a comprehensive suite of after-sales services, from scheduled maintenance and certified collision repair to parts distribution.

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