Asbury Automotive Group (NYSE:ABG) Shares Climb 9.1% - Here's What Happened

Key Points

• Asbury Automotive Group shares jumped 9.1% to about $188.73, although trading volume was 52% below the average daily level.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $214 average price target, with ratings ranging from “Strong Sell” to “Buy.”
• The company’s latest quarter showed pressure on results, with EPS of $6.16 missing estimates of $6.42 and revenue declining 8.1% year over year; net margin was 2.83%.

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report)'s share price was up 9.1% on Tuesday. The company traded as high as $191.37 and last traded at $188.7280. Approximately 120,761 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 251,249 shares. The stock had previously closed at $172.96.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ABG. Zacks Research lowered shares of Asbury Automotive Group from a "hold" rating to a "strong sell" rating in a research report on Friday, October 16th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Asbury Automotive Group in a research note on Thursday. Barclays reissued a "reduce" rating on shares of Asbury Automotive Group in a research report on Tuesday, October 6th. Morgan Stanley decreased their target price on 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. Finally, Seaport Research Partners upgraded Asbury Automotive Group from a "neutral" rating to a "buy" rating and set a $300.00 target price for the company in a research note on Tuesday, September 8th. Two research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $214.00.

Asbury Automotive Group Price Performance

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 has a market cap of $3.41 billion, a price-to-earnings ratio of 7.10, a price-to-earnings-growth ratio of 0.97 and a beta of 0.78. The company's 50-day moving average is $190.06 and its 200-day moving average is $205.47.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The company reported $6.16 earnings per share for the quarter, missing analysts' consensus estimates of $6.42 by ($0.26). Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. During the same period last year, the company earned $7.17 EPS. The firm's revenue was down 8.1% on a year-over-year basis. Equities research analysts expect that Asbury Automotive Group, Inc. will post 25.64 earnings per share 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 stock was sold at an average price of $250.28, for a total transaction of $237,265.44. Following the completion of the transaction, the senior vice president directly owned 11,259 shares of the company's stock, valued at approximately $2,817,902.52. This trade represents a 7.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.75% of the stock is owned by company insiders.

Institutional Investors Weigh In On Asbury Automotive Group

A number of hedge funds have recently made changes to their positions in the company. Evergreen Capital Management LLC acquired a new position in shares of Asbury Automotive Group in the 3rd quarter worth approximately $511,000. Lawson Kroeker Investment Management Inc. NE raised its position in Asbury Automotive Group by 6.9% in the 3rd quarter. Lawson Kroeker Investment Management Inc. NE now owns 35,723 shares of the company's stock valued at $6,155,000 after purchasing an additional 2,297 shares during the last quarter. Inspire Investing LLC boosted its stake in Asbury Automotive Group by 7.9% in the third quarter. Inspire Investing LLC now owns 3,667 shares of the company's stock worth $632,000 after purchasing an additional 270 shares in the last quarter. Cooke & Bieler LP bought a new stake in shares of Asbury Automotive Group during the third quarter worth $65,167,000. Finally, Nisa Investment Advisors LLC grew its holdings in shares of Asbury Automotive Group by 110.8% during the third quarter. Nisa Investment Advisors LLC now owns 1,225 shares of the company's stock worth $211,000 after purchasing an additional 644 shares during the last quarter.

Asbury Automotive Group Company Profile

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that operates franchised and independent dealerships. Its dealerships sell new and used vehicles from a range of domestic, import and luxury automobile brands, and provide related services throughout the vehicle ownership cycle.

The company's operations include automotive repair and maintenance, parts and accessories, collision repair, vehicle financing and insurance products, and other dealership services. Asbury also supports vehicle sales and service through digital retailing and online customer tools.

Founded in 1995, Asbury has expanded through acquisitions and serves customers across multiple markets in the United States.

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