Asbury Automotive Group (NYSE:ABG) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised Asbury Automotive Group’s price target to $230 from $220 while maintaining an “equal weight” rating, implying approximately 7.35% upside.
• Analyst sentiment remains cautious: ABG has a consensus “Hold” rating, with two Buy ratings, six Holds and one Sell, and an average price target of $246.71.
• Asbury reported quarterly EPS of $6.82, beating the $6.31 consensus estimate, although revenue of $4.38 billion fell short of expectations. Shares recently traded at $214.26, with a market capitalization of about $3.85 billion.

Asbury Automotive Group (NYSE:ABG - Get Free Report) had its target price increased by analysts at Morgan Stanley from $220.00 to $230.00 in a report issued on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price objective points to a potential upside of 7.35% from the stock's current price.

A number of other analysts have also commented on ABG. JPMorgan Chase & Co. lowered their target price on shares of Asbury Automotive Group from $220.00 to $190.00 and set an "underweight" rating for the company in a report on Tuesday. Barclays increased their price target on Asbury Automotive Group from $225.00 to $265.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 29th. Citigroup lifted their price objective on Asbury Automotive Group from $212.00 to $250.00 and gave the stock a "neutral" rating in a research note on Friday, July 31st. Weiss Ratings reiterated a "hold (c-)" rating on shares of Asbury Automotive Group in a report on Friday, July 24th. Finally, UBS Group set a $250.00 target price on Asbury Automotive Group in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Asbury Automotive Group currently has a consensus rating of "Hold" and an average price target of $246.71.

Asbury Automotive Group Price Performance

NYSE ABG traded down $1.73 on Friday, hitting $214.26. 65,945 shares of the company were exchanged, compared to its average volume of 249,646. The firm has a 50 day moving average of $208.61 and a two-hundred day moving average of $208.48. The company has a market cap of $3.85 billion, a P/E ratio of 8.01, a P/E/G ratio of 0.86 and a beta of 0.71. The company has a current ratio of 0.91, a quick ratio of 0.29 and a debt-to-equity ratio of 0.77. Asbury Automotive Group has a 1-year low of $172.01 and a 1-year high of $263.38.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The company reported $6.82 earnings per share for the quarter, beating the consensus estimate of $6.31 by $0.51. The firm had revenue of $4.38 billion during the quarter, compared to analysts' expectations of $4.49 billion. Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. The company's quarterly revenue was up .3% compared to the same quarter last year. During the same quarter last year, the company posted $7.43 EPS. On average, equities analysts predict that Asbury Automotive Group will post 26.03 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Jed Milstein sold 948 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total value of $237,265.44. Following the completion of the transaction, the senior vice president owned 11,259 shares of the company's stock, valued at $2,817,902.52. The trade was a 7.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director B. Christopher Disantis acquired 157 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average price of $182.31 per share, with a total value of $28,622.67. Following the transaction, the director owned 6,400 shares in the company, valued at $1,166,784. This represents a 2.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.75% of the company's stock.

Hedge Funds Weigh In On Asbury Automotive Group

Several institutional investors have recently modified their holdings of the business. M&T Bank Corp bought a new position in shares of Asbury Automotive Group in the 4th quarter valued at about $5,639,000. Comerica Bank raised its holdings in Asbury Automotive Group by 103.1% during the fourth quarter. Comerica Bank now owns 18,880 shares of the company's stock worth $4,390,000 after acquiring an additional 9,586 shares in the last quarter. Thrivent Financial for Lutherans raised its holdings in Asbury Automotive Group by 106.5% during the fourth quarter. Thrivent Financial for Lutherans now owns 296,057 shares of the company's stock worth $68,842,000 after acquiring an additional 152,669 shares in the last quarter. Fieldview Capital Management LLC acquired a new position in Asbury Automotive Group during the fourth quarter valued at approximately $3,336,000. Finally, Fifth Third Bancorp boosted its position in Asbury Automotive Group by 13,382.1% during the first quarter. Fifth Third Bancorp now owns 21,032 shares of the company's stock valued at $4,110,000 after purchasing an additional 20,876 shares during the last quarter.

Asbury Automotive Group Company Profile

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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