Lakewood Capital Management LP Invests $35.92 Million in Asbury Automotive Group, Inc. $ABG

Key Points

• Lakewood Capital Management established a new $35.92 million position in Asbury Automotive Group during the second quarter, acquiring 178,629 shares and owning approximately 1% of the company.
• Asbury reported quarterly EPS of $6.82, beating estimates of $6.31, while revenue rose 0.3% year over year to $4.38 billion but fell short of expectations.
• Analyst sentiment remains mixed, with two Buy, six Hold, and one Sell rating; the consensus rating is Hold with a $246.71 price target.

Lakewood Capital Management LP purchased a new position in shares of Asbury Automotive Group, Inc. (NYSE:ABG - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 178,629 shares of the company's stock, valued at approximately $35,919,000. Asbury Automotive Group comprises about 1.9% of Lakewood Capital Management LP's holdings, making the stock its 22nd largest holding. Lakewood Capital Management LP owned 1.00% of Asbury Automotive Group at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the business. Legal & General Group Plc bought a new position in Asbury Automotive Group in the second quarter valued at approximately $8,884,000. The Manufacturers Life Insurance Company bought a new stake in shares of Asbury Automotive Group during the 2nd quarter valued at $2,053,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Asbury Automotive Group during the 2nd quarter valued at $928,000. PEAK6 LLC acquired a new position in shares of Asbury Automotive Group in the 2nd quarter valued at $334,000. Finally, Commerce Bank bought a new position in shares of Asbury Automotive Group in the 2nd quarter worth $295,000.

Asbury Automotive Group Price Performance

ABG opened at $210.91 on Tuesday. The stock has a market cap of $3.79 billion, a P/E ratio of 7.89, a P/E/G ratio of 0.83 and a beta of 0.71. Asbury Automotive Group, Inc. has a 12 month low of $172.01 and a 12 month high of $263.38. 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 company has a fifty day simple moving average of $212.71 and a 200 day simple moving average of $205.90.

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, topping the consensus estimate of $6.31 by $0.51. Asbury Automotive Group had a return on equity of 12.72% and a net margin of 2.83%.The firm had revenue of $4.38 billion for the quarter, compared to analyst estimates of $4.49 billion. During the same period in the previous year, the company posted $7.43 earnings per share. The company's revenue for the quarter was up .3% on a year-over-year basis. On average, research analysts expect that Asbury Automotive Group, Inc. will post 26.43 EPS for the current year.

Insider Buying and Selling at Asbury Automotive Group

In other news, SVP Jed Milstein sold 948 shares of Asbury Automotive Group stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $250.28, for a total transaction of $237,265.44. Following the transaction, the senior vice president owned 11,259 shares in the company, valued at $2,817,902.52. The trade was a 7.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.75% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Stephens reaffirmed an "overweight" rating and set a $242.00 price objective on shares of Asbury Automotive Group in a research note on Tuesday, June 2nd. Morgan Stanley increased their target price on Asbury Automotive Group from $220.00 to $230.00 and gave the company an "equal weight" rating in a research note on Friday, August 7th. Weiss Ratings restated a "hold (c-)" rating on shares of Asbury Automotive Group in a report on Friday, July 24th. Citigroup boosted their target price 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. Finally, JPMorgan Chase & Co. lowered 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. Two research 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. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $246.71.

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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