AutoNation (NYSE:AN) Raised to Buy (B-) at Weiss Ratings

Key Points

• AutoNation has been upgraded by Weiss Ratings from a "hold (c+)" rating to a "buy (b-)" rating, signaling increased confidence in the stock's performance.
• Despite the upgrade from Weiss, other analysts like Wall Street Zen have downgraded AutoNation from "buy" to "hold," indicating mixed views on the stock's potential.
• The company reported earnings of $5.01 per share for the last quarter, exceeding expectations, and its revenue reached $7.04 billion, up 6.9% year-over-year.

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

Other equities research analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of AutoNation from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Citigroup reaffirmed a "buy" rating on shares of AutoNation in a research report on Thursday, September 25th. Morgan Stanley boosted their price target on shares of AutoNation from $195.00 to $220.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Stephens boosted their price target on shares of AutoNation from $190.00 to $200.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 29th. Finally, Wells Fargo & Company cut their price target on shares of AutoNation from $221.00 to $220.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 15th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, AutoNation presently has an average rating of "Moderate Buy" and an average target price of $225.63.

AutoNation Price Performance

AN traded down $8.47 on Friday, hitting $200.20. 570,264 shares of the company's stock were exchanged, compared to its average volume of 469,540. AutoNation has a fifty-two week low of $148.33 and a fifty-two week high of $228.92. The company has a current ratio of 0.81, a quick ratio of 0.21 and a debt-to-equity ratio of 1.84. The firm has a 50-day moving average price of $218.59 and a 200-day moving average price of $199.13. The stock has a market cap of $7.55 billion, a price-to-earnings ratio of 12.54, a P/E/G ratio of 1.01 and a beta of 0.85.

AutoNation (NYSE:AN - Get Free Report) last announced its earnings results on Thursday, October 23rd. The company reported $5.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.85 by $0.16. AutoNation had a net margin of 2.31% and a return on equity of 31.12%. The company had revenue of $7.04 billion for the quarter, compared to analysts' expectations of $6.74 billion. During the same quarter in the previous year, the company posted $4.02 EPS. The firm's quarterly revenue was up 6.9% on a year-over-year basis. As a group, equities analysts anticipate that AutoNation will post 18.15 earnings per share for the current year.

Institutional Investors Weigh In On AutoNation

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of AutoNation by 7.2% in the first quarter. Vanguard Group Inc. now owns 3,256,308 shares of the company's stock valued at $527,261,000 after acquiring an additional 219,474 shares during the period. Boston Partners lifted its holdings in shares of AutoNation by 8.3% during the first quarter. Boston Partners now owns 1,964,187 shares of the company's stock worth $318,749,000 after purchasing an additional 149,959 shares during the period. Brave Warrior Advisors LLC lifted its holdings in shares of AutoNation by 7.5% during the second quarter. Brave Warrior Advisors LLC now owns 1,214,510 shares of the company's stock worth $241,262,000 after purchasing an additional 84,455 shares during the period. Invesco Ltd. lifted its holdings in shares of AutoNation by 20.6% during the second quarter. Invesco Ltd. now owns 815,931 shares of the company's stock worth $162,085,000 after purchasing an additional 139,363 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in shares of AutoNation by 51.8% during the second quarter. AQR Capital Management LLC now owns 631,744 shares of the company's stock worth $125,439,000 after purchasing an additional 215,577 shares during the period. 94.62% of the stock is 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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