Bank of America Corp DE Makes New $14.23 Million Investment in Asbury Automotive Group, Inc. $ABG

Key Points

• Bank of America initiated a $14.23 million stake in Asbury Automotive Group during the second quarter, purchasing 70,794 shares representing approximately 0.39% ownership.
• Several major institutional investors also increased exposure, including BlackRock, which acquired a position valued at approximately $593.5 million, while Dimensional Fund Advisors expanded its stake by 3%.
• Asbury exceeded quarterly earnings expectations with EPS of $6.82 versus the $6.31 consensus, though revenue of $4.38 billion fell short of estimates. Analysts maintain a consensus “Hold” rating with an average price target of $237.83.

Bank of America Corp DE bought a new stake in shares of Asbury Automotive Group, Inc. (NYSE:ABG - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 70,794 shares of the company's stock, valued at approximately $14,235,000. Bank of America Corp DE owned about 0.39% of Asbury Automotive Group as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Asbury Automotive Group during the second quarter valued at approximately $593,499,000. Dimensional Fund Advisors LP grew its stake in shares of Asbury Automotive Group by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,156,426 shares of the company's stock worth $225,977,000 after acquiring an additional 34,104 shares during the last quarter. Norges Bank purchased a new stake in Asbury Automotive Group during the 4th quarter valued at about $77,963,000. Madison Asset Management LLC bought a new stake in Asbury Automotive Group during the 2nd quarter valued at about $60,592,000. Finally, Magnolia Group LLC increased its stake in Asbury Automotive Group by 3.1% during the 1st quarter. Magnolia Group LLC now owns 288,004 shares of the company's stock valued at $56,279,000 after purchasing an additional 8,731 shares in the last quarter.

Asbury Automotive Group Stock Performance

Shares of ABG stock opened at $185.00 on Friday. Asbury Automotive Group, Inc. has a fifty-two week low of $172.01 and a fifty-two week high of $258.74. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.91 and a quick ratio of 0.29. The stock's 50-day moving average is $211.31 and its two-hundred day moving average is $202.83. The firm has a market cap of $3.32 billion, a P/E ratio of 6.92, a PEG ratio of 0.69 and a beta of 0.71.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported $6.82 earnings per share for the quarter, beating analysts' consensus estimates of $6.31 by $0.51. The business had revenue of $4.38 billion for the quarter, compared to analysts' expectations of $4.49 billion. Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. The firm's revenue for the quarter was up .3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $7.43 earnings per share. Analysts predict that Asbury Automotive Group, Inc. will post 26.44 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Jed Milstein sold 948 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total value of $237,265.44. Following the transaction, the senior vice president owned 11,259 shares in the company, valued at approximately $2,817,902.52. This represents a 7.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.75% of the company's stock.

Analyst Ratings Changes

ABG has been the subject of a number of analyst reports. JPMorgan Chase & Co. cut their price target on Asbury Automotive Group from $220.00 to $190.00 and set an "underweight" rating for the company in a research note on Tuesday, August 4th. Morgan Stanley increased their price target on shares of Asbury Automotive Group from $220.00 to $230.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. UBS Group set a $250.00 target price on shares of Asbury Automotive Group in a research note on Wednesday, July 29th. Barclays boosted their price target on shares of Asbury Automotive Group from $225.00 to $265.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 29th. Finally, Citigroup increased their price objective on Asbury Automotive Group from $212.00 to $250.00 and gave the stock a "neutral" rating in a research report on Friday, July 31st. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Asbury Automotive Group currently has an average rating of "Hold" and a consensus target price of $237.83.

Asbury Automotive Group Profile

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that sells new and used vehicles through a network of franchised dealerships. The company represents a range of domestic, import and luxury automotive brands and serves consumers in multiple markets across the United States.

In addition to vehicle sales, Asbury provides automotive maintenance and repair services, replacement parts, collision repair and other dealership-related services. Its dealerships also offer financing and insurance products, vehicle protection plans and digital tools designed to support vehicle purchasing and ownership.

Founded in 1995 and headquartered in Duluth, Georgia, Asbury has expanded through acquisitions as well as the development of its dealership portfolio.

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