AutoNation (NYSE:AN) Cut to Hold (C+) at Weiss Ratings

Key Points

• AutoNation has been downgraded by Weiss Ratings from a "buy (b-)" to a "hold (c+)" rating, indicating a more cautious outlook for the stock.
• Despite the downgrade, analysts maintain a generally positive outlook with a consensus rating of "Moderate Buy" and a price target around $222.63, with some analysts still assigning a "buy" rating.
• Recently, AutoNation reported strong quarterly earnings of $5.46 per share, surpassing analysts' estimates and showing a year-over-year revenue increase of 7.6%.

AutoNation (NYSE:AN - Get Free Report) was downgraded by research analysts at Weiss Ratings from a "buy (b-)" rating to a "hold (c+)" rating in a note issued to investors on Wednesday,Weiss Ratings reports.

Other analysts have also issued research reports about the stock. Bank of America reduced their price target on shares of AutoNation from $255.00 to $250.00 and set a "buy" rating on the stock in a research report on Wednesday, September 10th. Wells Fargo & Company boosted their price target on shares of AutoNation from $209.00 to $221.00 and gave the company an "equal weight" rating in a research note on Monday, July 28th. Citigroup reaffirmed a "buy" rating on shares of AutoNation in a research report on Thursday, September 25th. Morgan Stanley upped their price target on AutoNation from $195.00 to $220.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Finally, Stephens boosted their price objective on AutoNation from $190.00 to $200.00 and gave the company an "equal weight" rating in a report on Tuesday, July 29th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $222.63.

AutoNation Price Performance

Shares of AN traded up $1.14 during trading hours on Wednesday, hitting $216.32. 328,882 shares of the stock were exchanged, compared to its average volume of 472,290. AutoNation has a 12-month low of $148.33 and a 12-month high of $228.92. The company has a market cap of $8.16 billion, a price-to-earnings ratio of 13.55, a price-to-earnings-growth ratio of 1.00 and a beta of 0.85. The stock's 50-day moving average price is $214.20 and its two-hundred day moving average price is $195.13. The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.21 and a current ratio of 0.81.

AutoNation (NYSE:AN - Get Free Report) last posted its quarterly earnings results on Friday, July 25th. The company reported $5.46 earnings per share for the quarter, topping analysts' consensus estimates of $4.70 by $0.76. AutoNation had a net margin of 2.31% and a return on equity of 31.12%. The firm had revenue of $6.97 billion for the quarter, compared to analyst estimates of $6.77 billion. During the same period in the previous year, the business posted $3.99 earnings per share. AutoNation's quarterly revenue was up 7.6% on a year-over-year basis. Research analysts expect that AutoNation will post 18.15 earnings per share for the current year.

Institutional Investors Weigh In On AutoNation

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Geneos Wealth Management Inc. increased its holdings in AutoNation by 37.4% in the first quarter. Geneos Wealth Management Inc. now owns 235 shares of the company's stock valued at $38,000 after buying an additional 64 shares during the last quarter. GAMMA Investing LLC increased its holdings in shares of AutoNation by 81.1% in the 1st quarter. GAMMA Investing LLC now owns 460 shares of the company's stock valued at $74,000 after acquiring an additional 206 shares during the last quarter. Parallel Advisors LLC raised its position in shares of AutoNation by 45.3% during the 2nd quarter. Parallel Advisors LLC now owns 375 shares of the company's stock worth $74,000 after acquiring an additional 117 shares in the last quarter. SVB Wealth LLC purchased a new stake in AutoNation during the first quarter worth approximately $86,000. Finally, IFP Advisors Inc lifted its stake in AutoNation by 38.0% during the second quarter. IFP Advisors Inc now owns 508 shares of the company's stock worth $101,000 after purchasing an additional 140 shares during the last quarter. 94.62% of the stock is currently owned by institutional investors and hedge funds.

About AutoNation

AutoNation, Inc, through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.

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