BlackRock Inc. Makes New $593.50 Million Investment in Asbury Automotive Group, Inc. $ABG

Key Points

• BlackRock acquired 2.95 million shares of Asbury Automotive Group during the second quarter, investing approximately $593.5 million and taking a 16.44% ownership stake.
• Analysts remain broadly neutral, with Asbury carrying an average “Hold” rating and a consensus price target of $246.71; recent targets ranged from $190 to $265.
• Asbury reported quarterly earnings of $6.82 per share, beating estimates of $6.31, while revenue reached $4.38 billion—slightly below forecasts but up 0.3% year over year.

BlackRock Inc. purchased a new position in Asbury Automotive Group, Inc. (NYSE:ABG - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 2,951,558 shares of the company's stock, valued at approximately $593,499,000. BlackRock Inc. owned 16.44% of Asbury Automotive Group as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Los Angeles Capital Management LLC bought a new stake in shares of Asbury Automotive Group during the 4th quarter worth $25,000. Torren Management LLC bought a new position in Asbury Automotive Group in the fourth quarter valued at about $27,000. Quarry LP raised its stake in Asbury Automotive Group by 319.2% during the third quarter. Quarry LP now owns 109 shares of the company's stock worth $27,000 after acquiring an additional 83 shares in the last quarter. Bogart Wealth LLC raised its stake in Asbury Automotive Group by 52.4% during the fourth quarter. Bogart Wealth LLC now owns 128 shares of the company's stock worth $30,000 after acquiring an additional 44 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its holdings in shares of Asbury Automotive Group by 69.2% in the second quarter. Osaic Holdings Inc. now owns 132 shares of the company's stock worth $31,000 after acquiring an additional 54 shares during the last quarter.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ABG. Barclays lifted their price target on shares of Asbury Automotive Group from $225.00 to $265.00 and gave the company an "equal weight" rating in a report on Wednesday, July 29th. Stephens reissued an "overweight" rating and issued a $242.00 price objective on shares of Asbury Automotive Group in a research note on Tuesday, June 2nd. Morgan Stanley raised their price objective on Asbury Automotive Group from $220.00 to $230.00 and gave the company an "equal weight" rating in a report on Friday, August 7th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Asbury Automotive Group in a research report on Friday, July 24th. Finally, JPMorgan Chase & Co. reduced their price target on Asbury Automotive Group from $220.00 to $190.00 and set an "underweight" rating on the stock in a research report on Tuesday, August 4th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $246.71.

Asbury Automotive Group Price Performance

Shares of NYSE:ABG opened at $215.39 on Monday. The company has a quick ratio of 0.29, a current ratio of 0.91 and a debt-to-equity ratio of 0.77. The stock's 50 day moving average is $212.48 and its 200-day moving average is $206.05. Asbury Automotive Group, Inc. has a twelve month low of $172.01 and a twelve month high of $263.38. The firm has a market capitalization of $3.87 billion, a price-to-earnings ratio of 8.05, a PEG ratio of 0.83 and a beta of 0.71.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last released its quarterly earnings data 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. Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. The firm had revenue of $4.38 billion for the quarter, compared to analyst estimates of $4.49 billion. During the same period last year, the firm earned $7.43 earnings per share. The business's quarterly revenue was up .3% compared to the same quarter last year. Sell-side analysts forecast that Asbury Automotive Group, Inc. will post 26.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other Asbury Automotive Group news, SVP Jed Milstein sold 948 shares of Asbury Automotive Group stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total transaction of $237,265.44. Following the transaction, the senior vice president directly owned 11,259 shares of the company's stock, valued at $2,817,902.52. The trade was a 7.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.75% of the company's stock.

About Asbury Automotive Group

Asbury Automotive Group, Inc NYSE: ABG is one of the largest automotive retailers in the United States. Headquartered in Duluth, Georgia, the company operates a network of franchised dealerships representing a diverse portfolio of automotive brands. Its core business activities include the sale of new and pre-owned vehicles, as well as the provision of vehicle finance, insurance and protection products to retail customers.

In addition to retail sales, Asbury offers a comprehensive suite of after-sales services, from scheduled maintenance and certified collision repair to parts distribution.

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