Asbury Automotive Group (NYSE:ABG) Shares Gap Down on Disappointing Earnings

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) shares gapped down before the market opened on Tuesday following a dissappointing 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 trading hands.

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

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on ABG shares. Citigroup assumed coverage on Asbury Automotive Group in a research note on Wednesday, April 23rd. They issued a "neutral" rating and a $236.00 price objective for the company. JPMorgan Chase & Co. lowered 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 report on Thursday, March 27th. 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. Finally, Stephens upped their target price on Asbury Automotive Group from $220.00 to $260.00 and gave the company an "equal weight" rating in a research note on Tuesday, February 11th. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $258.50.

Insider Buying and Selling

In related news, COO Daniel Clara sold 1,217 shares of the company's stock in a transaction on Wednesday, February 19th. The stock was sold at an average price of $296.64, for a total value of $361,010.88. Following the transaction, the chief operating officer now directly owns 3,747 shares of the company's stock, valued at $1,111,510.08. This represents a 24.52 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.59% of the stock is owned by company insiders.

Institutional Trading of Asbury Automotive Group

Institutional investors and hedge funds have recently bought and sold shares of the business. Madison Investment Advisors LLC purchased a new position in shares of Asbury Automotive Group during the fourth quarter worth $82,426,000. Norges Bank purchased a new position in shares of Asbury Automotive Group during the 4th quarter valued at about $82,079,000. Artisan Partners Limited Partnership acquired a new position in shares of Asbury Automotive Group in the 4th quarter valued at about $51,118,000. GAMMA Investing LLC boosted its stake 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 worth $285,790,000 after buying an additional 128,991 shares during the last quarter. Finally, Eminence Capital LP grew its holdings in Asbury Automotive Group by 15.8% during the fourth 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 period.

Asbury Automotive Group Stock Performance

The company has a market capitalization of $4.32 billion, a PE ratio of 10.23 and a beta of 0.98. The firm has a 50-day moving average of $232.82 and a two-hundred day moving average of $249.13. The company has a quick ratio of 0.41, a current ratio of 1.20 and a debt-to-equity ratio of 0.98.

About Asbury Automotive Group

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.