AutoNation (NYSE:AN) Upgraded at Northcoast Research

Key Points

• Northcoast Research upgraded AutoNation from neutral to buy and set a $240 price target, implying about 23.9% upside from the prior close.
• Other analysts have also turned more positive on the stock, with multiple firms issuing buy-equivalent ratings and the consensus target now around $245.73. Overall, 10 analysts rate AutoNation a Buy and 2 rate it Hold.
• AutoNation recently reported Q1 earnings of $4.69 per share, slightly below estimates, on $6.55 billion in revenue, which was also below expectations and down 2.1% year over year.

AutoNation (NYSE:AN - Get Free Report) was upgraded by equities researchers at Northcoast Research from a "neutral" rating to a "buy" rating in a report issued on Tuesday. The firm currently has a $240.00 target price on the stock. Northcoast Research's target price suggests a potential upside of 23.94% from the company's previous close.

A number of other brokerages have also recently commented on AN. Weiss Ratings raised AutoNation from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. UBS Group began coverage on AutoNation in a research report on Wednesday, May 27th. They set a "buy" rating and a $234.00 price objective for the company. Morgan Stanley restated an "overweight" rating and set a $240.00 price objective on shares of AutoNation in a research note on Thursday, May 7th. Wells Fargo & Company cut their price objective on AutoNation from $208.00 to $202.00 and set an "equal weight" rating for the company in a report on Monday, July 6th. Finally, Citigroup lifted their price target on AutoNation from $269.00 to $287.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. Ten research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $245.73.

AutoNation Stock Performance

AutoNation stock opened at $193.64 on Tuesday. AutoNation has a 52-week low of $176.62 and a 52-week high of $228.92. The firm has a market capitalization of $6.48 billion, a P/E ratio of 10.49, a P/E/G ratio of 0.83 and a beta of 0.75. The stock has a fifty day moving average price of $191.28 and a two-hundred day moving average price of $198.61. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.81 and a quick ratio of 0.20.

AutoNation (NYSE:AN - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The company reported $4.69 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.71 by ($0.02). AutoNation had a net margin of 2.47% and a return on equity of 31.45%. The business had revenue of $6.55 billion during the quarter, compared to the consensus estimate of $6.65 billion. During the same period in the prior year, the firm earned $4.68 earnings per share. The business's quarterly revenue was down 2.1% compared to the same quarter last year. As a group, analysts anticipate that AutoNation will post 21.35 EPS for the current fiscal year.

Insider Activity

In related news, CAO Kimberly Dees sold 2,500 shares of the company's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $204.91, for a total transaction of $512,275.00. Following the completion of the sale, the chief accounting officer directly owned 1,456 shares in the company, valued at $298,348.96. This represents a 63.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On AutoNation

Institutional investors and hedge funds have recently bought and sold shares of the company. Geneos Wealth Management Inc. raised its position in shares of AutoNation by 37.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 235 shares of the company's stock worth $38,000 after acquiring an additional 64 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. bought a new position in AutoNation in the 4th quarter valued at about $41,000. Employees Retirement System of Texas bought a new position in shares of AutoNation in the third quarter valued at approximately $48,000. Smartleaf Asset Management LLC lifted its stake in AutoNation by 49.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 259 shares of the company's stock valued at $54,000 after acquiring an additional 86 shares in the last quarter. Finally, Sound Income Strategies LLC purchased a new position in AutoNation during the fourth quarter worth about $57,000. Institutional investors and hedge funds own 94.62% of the company's stock.

About AutoNation

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.

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