AutoNation (NYSE:AN) Reaches New 52-Week Low - Should You Sell?

Key Points

• AutoNation shares fell to a new 52-week low of $164.70, well below their 50-day and 200-day moving averages of $202.92 and $196.82, respectively.
• Despite the decline, analysts remain broadly positive, with a “Moderate Buy” consensus, an average price target of $246.50, and nine Buy ratings versus three Holds.
• The company slightly beat quarterly EPS expectations at $5.56, but revenue declined 0.6% year over year to $6.93 billion; institutional investors own a substantial 94.62% of outstanding shares.

AutoNation, Inc. (NYSE:AN - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $164.70 and last traded at $164.8370, with a volume of 463589 shares changing hands. The stock had previously closed at $169.61.

Analysts Set New Price Targets

AN has been the subject of a number of recent research reports. Barclays increased their price objective on shares of AutoNation from $255.00 to $260.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Northcoast Research raised shares of AutoNation from a "neutral" rating to a "buy" rating and set a $240.00 target price on the stock in a research note on Tuesday, July 14th. Morgan Stanley increased their price target on shares of AutoNation from $240.00 to $250.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Weiss Ratings cut shares of AutoNation from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday. Finally, Seaport Research Partners restated a "buy" rating and set a $255.00 price target on shares of AutoNation in a research note on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, AutoNation presently has an average rating of "Moderate Buy" and an average target price of $246.50.

AutoNation Price Performance

The company has a debt-to-equity ratio of 2.68, a current ratio of 0.78 and a quick ratio of 0.18. The stock has a market capitalization of $5.45 billion, a P/E ratio of 7.63, a PEG ratio of 0.82 and a beta of 0.72. The company's 50 day simple moving average is $202.92 and its two-hundred day simple moving average is $196.82.

AutoNation (NYSE:AN - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported $5.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.48 by $0.08. AutoNation had a net margin of 2.82% and a return on equity of 31.24%. The company had revenue of $6.93 billion during the quarter, compared to analysts' expectations of $7 billion. During the same quarter in the previous year, the company posted $2.26 earnings per share. AutoNation's quarterly revenue was down .6% compared to the same quarter last year. As a group, equities analysts expect that AutoNation, Inc. will post 21.69 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Lisa Lutoff-Perlo sold 900 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $220.00, for a total transaction of $198,000.00. Following the sale, the director owned 7,989 shares in the company, valued at approximately $1,757,580. This represents a 10.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AN. BlackRock Inc. bought a new position in shares of AutoNation in the second quarter worth about $438,689,000. Norges Bank acquired a new position in shares of AutoNation during the fourth quarter worth approximately $69,319,000. Bank of America Corp DE bought a new stake in shares of AutoNation during the second quarter valued at approximately $36,925,000. Bank of New York Mellon Corp bought a new stake in shares of AutoNation during the second quarter valued at approximately $33,673,000. Finally, Hsbc Holdings PLC increased its holdings in shares of AutoNation by 3,322.8% in the fourth quarter. Hsbc Holdings PLC now owns 62,946 shares of the company's stock valued at $12,995,000 after purchasing an additional 61,107 shares in the last quarter. 94.62% of the stock is owned by institutional investors.

AutoNation Company Profile

AutoNation, Inc is a leading automotive retailer in the United States. The company sells new and used vehicles through a network of franchised dealerships and provides automotive services including vehicle financing, insurance products, maintenance, repair, parts, and collision-repair services.

In addition to its manufacturer-branded dealerships, AutoNation operates AutoNation USA locations focused primarily on used vehicles and offers digital tools that allow customers to research, purchase, finance, and service vehicles online.

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