AutoNation (NYSE:AN) Downgraded by Wall Street Zen to Hold

Key Points

• AutoNation has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a shift in analyst sentiment towards the stock.
• Despite the downgrade, other analysts like Morgan Stanley and Bank of America have adjusted their target prices upwards, with an average price target of $222.63 for AutoNation shares.
• The stock recently reported earnings of $5.46 per share, exceeding expectations and showing a 7.6% year-over-year revenue growth.

AutoNation (NYSE:AN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other equities analysts also recently commented on AN. Guggenheim lowered their price target on AutoNation from $230.00 to $228.00 and set a "buy" rating on the stock in a report on Monday, August 11th. Bank of America lowered their price target on AutoNation from $255.00 to $250.00 and set a "buy" rating on the stock in a report on Wednesday, September 10th. Morgan Stanley increased their price target on AutoNation from $195.00 to $220.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Wells Fargo & Company increased their price target on AutoNation from $209.00 to $221.00 and gave the company an "equal weight" rating in a report on Monday, July 28th. Finally, Stephens increased their price target on AutoNation from $190.00 to $200.00 and gave the company an "equal weight" rating in a report on Tuesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $222.63.

AutoNation Stock Up 0.4%

NYSE:AN traded up $0.84 during mid-day trading on Friday, reaching $221.34. The stock had a trading volume of 344,224 shares, compared to its average volume of 400,984. The business's 50 day moving average is $209.69 and its 200 day moving average is $190.15. AutoNation has a fifty-two week low of $148.33 and a fifty-two week high of $228.92. The stock has a market cap of $8.35 billion, a P/E ratio of 13.87, a PEG ratio of 1.01 and a beta of 0.89. The company has a debt-to-equity ratio of 1.84, a current ratio of 0.81 and a quick ratio of 0.21.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AN. Ameriprise Financial Inc. lifted its position in AutoNation by 2.9% in the fourth quarter. Ameriprise Financial Inc. now owns 82,982 shares of the company's stock worth $14,094,000 after purchasing an additional 2,372 shares during the period. Focus Partners Wealth bought a new position in AutoNation in the fourth quarter worth $503,000. Lazard Asset Management LLC lifted its position in AutoNation by 122.7% in the fourth quarter. Lazard Asset Management LLC now owns 14,133 shares of the company's stock worth $2,400,000 after purchasing an additional 7,788 shares during the period. Millennium Management LLC lifted its position in AutoNation by 2,229.1% in the fourth quarter. Millennium Management LLC now owns 75,254 shares of the company's stock worth $12,781,000 after purchasing an additional 72,023 shares during the period. Finally, Nuveen Asset Management LLC lifted its position in AutoNation by 0.8% in the fourth quarter. Nuveen Asset Management LLC now owns 241,513 shares of the company's stock worth $41,019,000 after purchasing an additional 1,897 shares during the period. 94.62% of the stock is owned by institutional investors.

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.