Asbury Automotive Group (NYSE:ABG) Stock Jumps 6.9% - What's Next?

Key Points

• Asbury Automotive Group shares jumped 6.9% to about $173.10, although trading volume was 78% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $214, with recent targets ranging from $184 to $300.
• The company beat quarterly EPS expectations, reporting $6.82 versus the $6.31 consensus, while revenue reached $4.38 billion and rose 0.3% year over year; an insider subsequently sold shares at an average price of $250.28.

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) shares rose 6.9% on Thursday. The company traded as high as $174.09 and last traded at $173.0990. 55,033 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 247,451 shares. The stock had previously closed at $161.97.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on ABG shares. Citigroup boosted their price objective on Asbury Automotive Group from $212.00 to $250.00 and gave the stock a "neutral" rating in a research note on Friday, July 31st. Morgan Stanley cut 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. Barclays reiterated a "reduce" rating on shares of Asbury Automotive Group in a report on Tuesday, October 6th. Seaport Research Partners raised shares of Asbury Automotive Group from a "neutral" rating to a "buy" rating and set a $300.00 price target on the stock in a research report on Tuesday, September 8th. Finally, UBS Group lowered their price target on shares of Asbury Automotive Group from $250.00 to $193.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $214.00.

Asbury Automotive Group Trading Up 6.8%

The business has a fifty day moving average price of $196.69 and a two-hundred day moving average price of $200.74. The company has a current ratio of 0.91, a quick ratio of 0.29 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $3.10 billion, a PE ratio of 6.46, a PEG ratio of 0.65 and a beta of 0.78.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported $6.82 earnings per share (EPS) for the quarter, beating the consensus estimate 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 in the previous year, the firm earned $7.43 EPS. Asbury Automotive Group's revenue was up .3% on a year-over-year basis. Analysts expect that Asbury Automotive Group, Inc. will post 25.82 EPS for the current fiscal year.

Insider Buying and Selling at Asbury Automotive Group

In other Asbury Automotive Group news, SVP Jed Milstein sold 948 shares of Asbury Automotive Group stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total transaction of $237,265.44. Following the completion of the sale, the senior vice president directly owned 11,259 shares in the company, valued at $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 is available at the SEC website. 0.75% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Asbury Automotive Group

Several large investors have recently made changes to their positions in the stock. Cim Investment Management Inc. grew its holdings in shares of Asbury Automotive Group by 7.3% in the second quarter. Cim Investment Management Inc. now owns 1,167 shares of the company's stock valued at $235,000 after purchasing an additional 79 shares in the last quarter. Abel Hall LLC increased its stake in Asbury Automotive Group by 9.0% during the 1st quarter. Abel Hall LLC now owns 1,222 shares of the company's stock worth $239,000 after buying an additional 101 shares during the period. GAMMA Investing LLC increased its stake in Asbury Automotive Group by 20.2% during the 3rd quarter. GAMMA Investing LLC now owns 642 shares of the company's stock worth $111,000 after buying an additional 108 shares during the period. Allworth Financial LP increased its stake in Asbury Automotive Group by 263.3% during the 2nd quarter. Allworth Financial LP now owns 178 shares of the company's stock worth $36,000 after buying an additional 129 shares during the period. Finally, Nations Financial Group Inc. IA ADV lifted its holdings in Asbury Automotive Group by 3.0% during the 1st quarter. Nations Financial Group Inc. IA ADV now owns 4,459 shares of the company's stock worth $871,000 after buying an additional 130 shares in the last quarter.

Asbury Automotive Group Company Profile

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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