AutoNation (NYSE:AN) Shares Gap Up Following Strong Earnings

Key Points

• AutoNation shares gapped up after reporting better-than-expected quarterly earnings, with an EPS of $5.46 compared to analysts' estimate of $4.70.
• The company's revenue for the quarter reached $6.97 billion, surpassing the expected $6.77 billion and reflecting a 7.6% increase from the previous year.
• Wall Street analysts have mixed views on AutoNation, with ratings ranging from "hold" to "strong-buy," and an average price target of $209.88.
• Institutional investors collectively own 94.62% of AutoNation's stock, indicating strong confidence in the company's potential.

AutoNation, Inc. (NYSE:AN - Get Free Report)'s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $200.25, but opened at $208.43. AutoNation shares last traded at $197.73, with a volume of 129,653 shares changing hands.

The company reported $5.46 earnings per share for the quarter, topping analysts' consensus estimates of $4.70 by $0.76. The firm had revenue of $6.97 billion during the quarter, compared to analyst estimates of $6.77 billion. AutoNation had a return on equity of 31.31% and a net margin of 2.31%. The business's quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.99 earnings per share.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. 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 research note on Monday. Wall Street Zen upgraded AutoNation from a "hold" rating to a "buy" rating in a research report on Saturday, May 10th. Cfra Research upgraded shares of AutoNation to a "strong-buy" rating in a research report on Friday, April 25th. Stephens upped their price target on shares of AutoNation from $190.00 to $200.00 and gave the company an "equal weight" rating in a research note on Tuesday. Finally, Guggenheim dropped their price objective on shares of AutoNation from $212.00 to $183.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Three research analysts have rated the stock with a hold rating, five have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $211.38.

Institutional Investors Weigh In On AutoNation

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in AutoNation by 7.2% in the 1st quarter. Vanguard Group Inc. now owns 3,256,308 shares of the company's stock worth $527,261,000 after acquiring an additional 219,474 shares in the last quarter. Boston Partners boosted its holdings in shares of AutoNation by 8.3% in the first quarter. Boston Partners now owns 1,964,187 shares of the company's stock valued at $318,749,000 after purchasing an additional 149,959 shares during the period. Brave Warrior Advisors LLC grew its stake in AutoNation by 50.3% in the fourth quarter. Brave Warrior Advisors LLC now owns 1,461,213 shares of the company's stock worth $248,172,000 after purchasing an additional 488,904 shares in the last quarter. Alyeska Investment Group L.P. grew its stake in AutoNation by 63.0% in the fourth quarter. Alyeska Investment Group L.P. now owns 1,104,934 shares of the company's stock worth $187,662,000 after purchasing an additional 426,882 shares in the last quarter. Finally, Alliancebernstein L.P. increased its holdings in AutoNation by 23.3% during the 4th quarter. Alliancebernstein L.P. now owns 851,870 shares of the company's stock worth $144,682,000 after purchasing an additional 160,794 shares during the period. 94.62% of the stock is owned by institutional investors.

AutoNation Trading Down 1.8%

The firm has a market capitalization of $7.27 billion, a P/E ratio of 12.07, a price-to-earnings-growth ratio of 1.03 and a beta of 0.99. The stock has a 50-day simple moving average of $196.35 and a two-hundred day simple moving average of $183.52. The company has a current ratio of 0.77, a quick ratio of 0.22 and a debt-to-equity ratio of 1.72.

AutoNation Company Profile

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.