Asbury Automotive Group, Inc. (NYSE:ABG) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts now give Asbury Automotive Group a consensus rating of “Hold”, with nine brokerages covering the stock. The average 1-year price target is $233.13.
• The company’s latest earnings missed expectations, reporting $5.37 EPS versus $5.62 expected and revenue of $4.11 billion versus $4.37 billion estimated. Revenue also declined slightly year over year.
• ABG shares were trading at $224.84, near the middle of their 52-week range, while institutional investors such as Goldman Sachs and AQR Capital Management increased their holdings. One director also made a small insider purchase in May.

Shares of Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) have been assigned a consensus rating of "Hold" from the nine brokerages that are covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, six have given a hold rating and two have assigned a buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $233.1250.

A number of research firms have commented on ABG. Citigroup reduced their price objective 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. Weiss Ratings lowered Asbury Automotive Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, April 29th. Stephens reaffirmed an "overweight" rating and issued a $242.00 price target on shares of Asbury Automotive Group in a report on Tuesday, June 2nd. Morgan Stanley set a $220.00 price target on shares of Asbury Automotive Group in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Asbury Automotive Group from $235.00 to $220.00 and set an "underweight" rating on the stock in a report on Thursday, May 7th.

Asbury Automotive Group Stock Performance

NYSE:ABG opened at $224.84 on Friday. Asbury Automotive Group has a 1 year low of $172.01 and a 1 year high of $263.38. The firm has a 50 day moving average of $200.80 and a 200-day moving average of $209.84. The company has a current ratio of 0.94, a quick ratio of 0.29 and a debt-to-equity ratio of 0.78. The stock has a market capitalization of $4.19 billion, a P/E ratio of 7.96, a price-to-earnings-growth ratio of 1.30 and a beta of 0.74.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $5.37 EPS for the quarter, missing the consensus estimate of $5.62 by ($0.25). Asbury Automotive Group had a return on equity of 13.39% and a net margin of 3.05%.The business had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.37 billion. During the same period in the previous year, the firm earned $6.82 earnings per share. The firm's revenue was down .9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Asbury Automotive Group will post 26.26 EPS for the current fiscal year.

Insider Activity

In related news, Director B. Christopher Disantis bought 157 shares of Asbury Automotive Group stock in a transaction dated Wednesday, May 20th. The shares were bought at an average cost of $182.31 per share, for a total transaction of $28,622.67. Following the completion of the transaction, the director owned 6,400 shares of the company's stock, valued at approximately $1,166,784. This trade represents a 2.51% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.75% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ABG. AQR Capital Management LLC boosted its position in Asbury Automotive Group by 11.0% in the 1st quarter. AQR Capital Management LLC now owns 6,263 shares of the company's stock valued at $1,383,000 after buying an additional 619 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of Asbury Automotive Group by 49.1% during the first quarter. Goldman Sachs Group Inc. now owns 278,760 shares of the company's stock worth $61,561,000 after acquiring an additional 91,767 shares during the last quarter. United Services Automobile Association bought a new stake in shares of Asbury Automotive Group during the first quarter worth $265,000. Empowered Funds LLC lifted its stake in shares of Asbury Automotive Group by 11.4% during the first quarter. Empowered Funds LLC now owns 7,639 shares of the company's stock valued at $1,687,000 after acquiring an additional 783 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Asbury Automotive Group by 3.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 51,239 shares of the company's stock valued at $11,316,000 after acquiring an additional 1,676 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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