Asbury Automotive Group (NYSE:ABG) Stock Price Down 4.8% - Time to Sell?

Key Points

• Asbury Automotive shares fell 4.8% to about $185.80, with trading volume 46% below the average daily level.
• Analyst views remain mixed: the stock has a consensus “Hold” rating and an average price target of $237.83, ranging from JPMorgan’s $190 target to Seaport’s $300 target.
• Asbury beat quarterly EPS expectations ($6.82 versus $6.31) but missed revenue estimates, reporting $4.38 billion; revenue rose just 0.3% year over year while prior-year EPS was higher at $7.43.

Asbury Automotive Group, Inc. (NYSE:ABG - Get Free Report) shares were down 4.8% during trading on Thursday . The company traded as low as $187.48 and last traded at $185.8010. 131,939 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 242,536 shares. The stock had previously closed at $195.21.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. JPMorgan Chase & Co. dropped their price target on shares of Asbury Automotive Group from $220.00 to $190.00 and set an "underweight" rating for the company in a research report on Tuesday, August 4th. Morgan Stanley increased their price target on shares of Asbury Automotive Group from $220.00 to $230.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Barclays boosted their price objective on shares of Asbury Automotive Group from $225.00 to $265.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 29th. Weiss Ratings restated a "hold (c-)" rating on shares of Asbury Automotive Group in a research note on Friday, July 24th. Finally, Seaport Research Partners raised Asbury Automotive Group from a "neutral" rating to a "buy" rating and set a $300.00 target price on the stock in a report on Tuesday, September 8th. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $237.83.

Asbury Automotive Group Trading Down 5.1%

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 market cap of $3.33 billion, a price-to-earnings ratio of 6.95, a PEG ratio of 0.79 and a beta of 0.71. The firm has a 50 day moving average price of $215.81 and a two-hundred day moving average price of $204.07.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $6.82 EPS for the quarter, beating analysts' consensus estimates of $6.31 by $0.51. The business had revenue of $4.38 billion for the quarter, compared to analysts' expectations of $4.49 billion. Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. The business's quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $7.43 earnings per share. As a group, equities analysts forecast that Asbury Automotive Group, Inc. will post 26.44 earnings per share for the current year.

Insider Activity

In other news, SVP Jed Milstein sold 948 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $250.28, for a total value 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 position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.75% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ABG. BlackRock Inc. purchased a new stake in shares of Asbury Automotive Group in the second quarter worth approximately $593,499,000. Dimensional Fund Advisors LP raised its position in Asbury Automotive Group by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,156,426 shares of the company's stock valued at $225,977,000 after buying an additional 34,104 shares during the last quarter. Norges Bank bought a new position in Asbury Automotive Group during the 4th quarter valued at $77,963,000. Madison Asset Management LLC purchased a new position in Asbury Automotive Group during the 2nd quarter worth $60,592,000. Finally, Magnolia Group LLC grew its stake in shares of Asbury Automotive Group by 3.1% in the 1st quarter. Magnolia Group LLC now owns 288,004 shares of the company's stock worth $56,279,000 after acquiring an additional 8,731 shares in the last quarter.

About Asbury Automotive Group

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that sells new and used vehicles through a network of franchised dealerships. The company represents a range of domestic, import and luxury automotive brands and serves consumers in multiple markets across the United States.

In addition to vehicle sales, Asbury provides automotive maintenance and repair services, replacement parts, collision repair and other dealership-related services. Its dealerships also offer financing and insurance products, vehicle protection plans and digital tools designed to support vehicle purchasing and ownership.

Founded in 1995 and headquartered in Duluth, Georgia, Asbury has expanded through acquisitions as well as the development of its dealership portfolio.

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