Asbury Automotive Group (NYSE:ABG) Shares Gap Down Following Weak Earnings

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report)'s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $224.45, but opened at $212.16. Asbury Automotive Group shares last traded at $214.06, with a volume of 40,220 shares.

The company reported $6.82 earnings per share for the quarter, missing analysts' consensus estimates of $6.84 by ($0.02). Asbury Automotive Group had a return on equity of 16.29% and a net margin of 2.50%. The business had revenue of $4.15 billion for the quarter, compared to analyst estimates of $4.31 billion. During the same quarter in the prior year, the firm earned $7.21 EPS. The firm's quarterly revenue was down 1.3% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. JPMorgan Chase & Co. cut their price target on shares of Asbury Automotive Group from $290.00 to $250.00 and set a "neutral" rating for the company in a research note on Thursday, March 27th. Stephens upped their price target on Asbury Automotive Group from $220.00 to $260.00 and gave the company an "equal weight" rating in a research report on Tuesday, February 11th. Citigroup assumed coverage on Asbury Automotive Group in a report on Wednesday, April 23rd. They set a "neutral" rating and a $236.00 price objective for the company. Finally, Craig Hallum cut shares of Asbury Automotive Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 18th. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $258.50.

Insider Transactions at Asbury Automotive Group

In other news, COO Daniel Clara sold 1,217 shares of the business's stock in a transaction on Wednesday, February 19th. The stock was sold at an average price of $296.64, for a total transaction of $361,010.88. Following the completion of the sale, the chief operating officer now owns 3,747 shares in the company, valued at $1,111,510.08. The trade was a 24.52 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.59% of the stock is owned by company insiders.

Institutional Trading of Asbury Automotive Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ABG. Madison Investment Advisors LLC acquired a new stake in shares of Asbury Automotive Group during the fourth quarter worth $82,426,000. Norges Bank acquired a new stake in Asbury Automotive Group during the 4th quarter worth approximately $82,079,000. Artisan Partners Limited Partnership bought a new stake in Asbury Automotive Group in the 4th quarter valued at $51,118,000. GAMMA Investing LLC lifted its holdings in shares of Asbury Automotive Group by 30,639.2% in the first quarter. GAMMA Investing LLC now owns 129,412 shares of the company's stock valued at $285,790,000 after purchasing an additional 128,991 shares in the last quarter. Finally, Eminence Capital LP boosted its position in Asbury Automotive Group by 15.8% during the 4th quarter. Eminence Capital LP now owns 787,775 shares of the company's stock worth $191,453,000 after acquiring an additional 107,317 shares during the last quarter.

Asbury Automotive Group Price Performance

The firm has a market cap of $4.37 billion, a price-to-earnings ratio of 10.34 and a beta of 0.98. The company's fifty day moving average is $231.75 and its 200 day moving average is $249.30. The company has a quick ratio of 0.41, a current ratio of 1.20 and a debt-to-equity ratio of 0.98.

Asbury Automotive Group Company Profile

Asbury Automotive Group, Inc, together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services.