Asbury Automotive Group (NYSE:ABG) Hits New 52-Week Low - What's Next?

Key Points

• Asbury Automotive Group shares fell to a new 52-week low of $164.29, below the prior close of $167.60 and well under its 50-day and 200-day moving averages near $200.
• Analyst sentiment remains mixed but leans cautious: ABG has a consensus rating of “Hold” and an average price target of $214, with recent target cuts from Morgan Stanley, UBS and JPMorgan.
• The company beat quarterly EPS expectations, reporting $6.82 versus the $6.31 consensus, while revenue rose 0.3% year over year to $4.38 billion but fell short of estimates.

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) shares reached a new 52-week low on Monday. The stock traded as low as $164.29 and last traded at $164.6810, with a volume of 149,967 shares traded. The stock had previously closed at $167.60.

Wall Street Analyst Weigh In

ABG has been the topic of a number of recent research reports. Barclays restated a "reduce" rating on shares of Asbury Automotive Group in a research note on Tuesday, October 6th. Morgan Stanley reduced their price objective on shares of Asbury Automotive Group from $230.00 to $184.00 and set an "equal weight" rating for the company in a research note on Monday, October 5th. Seaport Research Partners upgraded shares of Asbury Automotive Group from a "neutral" rating to a "buy" rating and set a $300.00 price objective for the company in a research note on Tuesday, September 8th. UBS Group lowered their target price on shares of Asbury Automotive Group from $250.00 to $193.00 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. Finally, JPMorgan Chase & Co. dropped their target price on Asbury Automotive Group from $190.00 to $185.00 and set an "underweight" rating on the stock in a research report on Tuesday, October 6th. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $214.00.

Asbury Automotive Group Stock Performance

The company has a 50-day moving average price of $200.28 and a two-hundred day moving average price of $201.39. The stock has a market capitalization of $2.96 billion, a P/E ratio of 6.18, a PEG ratio of 0.66 and a beta of 0.78. The company has a quick ratio of 0.29, a current ratio of 0.91 and a debt-to-equity ratio of 0.77.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The company reported $6.82 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $4.49 billion. During the same period in the prior year, the firm posted $7.43 earnings per share. The company's revenue for the quarter was up .3% on a year-over-year basis. Equities analysts expect that Asbury Automotive Group, Inc. will post 25.82 earnings per share for the current year.

Insiders Place Their Bets

In other Asbury Automotive Group news, SVP Jed Milstein sold 948 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total value of $237,265.44. Following the sale, the senior vice president directly owned 11,259 shares in the company, valued at $2,817,902.52. This represents a 7.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.75% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ABG. Man Group plc purchased a new position in Asbury Automotive Group in the second quarter worth $3,208,000. BlackRock Inc. bought a new position in Asbury Automotive Group in the second quarter valued at $593,499,000. Legal & General Group Plc purchased a new stake in Asbury Automotive Group during the second quarter valued at about $8,884,000. Fieldview Capital Management LLC purchased a new stake in Asbury Automotive Group during the fourth quarter valued at about $3,336,000. Finally, Empowered Funds LLC purchased a new stake in Asbury Automotive Group during the second quarter valued at about $2,100,000.

About Asbury Automotive Group

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that operates franchised dealerships representing a range of domestic and international vehicle manufacturers. The company sells new and used cars, trucks and sport utility vehicles, and provides related financing and insurance products.

In addition to vehicle sales, Asbury's dealerships offer automotive maintenance and repair, replacement parts, collision repair and other after-sales services. The company also operates Clicklane, a digital retail platform designed to support online vehicle purchasing, financing and trade-ins.

Headquartered in Duluth, Georgia, Asbury serves customers through dealership locations across multiple U.S.

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