AutoNation (NYSE:AN) Shares Climb 6.7% - Still a Buy?

Key Points

• AutoNation shares rose 6.7% to approximately $163.52, although trading volume was 96% below the average session volume.
• Analysts maintain a generally positive outlook, with eight Buy ratings, three Holds and one Sell; the consensus rating is “Moderate Buy” with a $230 price target.
• The company exceeded quarterly earnings expectations, reporting $5.56 EPS versus the $5.48 estimate, while revenue reached $6.93 billion and declined 0.6% year over year.

AutoNation, Inc. (NYSE:AN - Get Free Report) was up 6.7% on Friday. The stock traded as high as $163.47 and last traded at $163.5190. 17,940 shares changed hands during trading, a decline of 96% from the average session volume of 448,400 shares. The stock had previously closed at $153.19.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Northcoast Research raised AutoNation from a "neutral" rating to a "buy" rating and set a $240.00 price target on the stock in a research note on Tuesday, July 14th. Seaport Research Partners reaffirmed a "buy" rating and set a $255.00 price objective on shares of AutoNation in a research note on Monday, August 3rd. UBS Group dropped their price objective on shares of AutoNation from $248.00 to $213.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. JPMorgan Chase & Co. cut their price objective on shares of AutoNation from $210.00 to $185.00 and set an "overweight" rating on the stock in a report on Tuesday, October 6th. Finally, Barclays decreased their target price on shares of AutoNation from $260.00 to $230.00 and set an "overweight" rating on the stock in a research report on Tuesday, October 6th. Eight investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $230.00.

AutoNation Price Performance

The company has a market capitalization of $5.42 billion, a PE ratio of 7.59, a PEG ratio of 0.75 and a beta of 0.81. The company has a current ratio of 0.78, a quick ratio of 0.18 and a debt-to-equity ratio of 2.68. The company's 50 day moving average price is $186.24 and its 200-day moving average price is $193.52.

AutoNation (NYSE:AN - Get Free Report) last issued its earnings results on Friday, July 31st. The company reported $5.56 earnings per share for the quarter, topping the consensus estimate of $5.48 by $0.08. AutoNation had a return on equity of 31.24% and a net margin of 2.82%. The business had revenue of $6.93 billion for the quarter, compared to analyst estimates of $7 billion. During the same period last year, the company posted $2.26 EPS. The business's quarterly revenue was down .6% on a year-over-year basis. On average, sell-side analysts forecast that AutoNation, Inc. will post 21.42 earnings per share for the current fiscal year.

Insider Activity at AutoNation

In other news, Director Lisa Lutoff-Perlo sold 900 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $220.00, for a total value of $198,000.00. Following the transaction, the director directly owned 7,989 shares in the company, valued at $1,757,580. This trade represents a 10.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.40% of the stock is currently owned by company insiders.

Institutional Trading of AutoNation

A number of institutional investors have recently modified their holdings of the company. Engineers Gate Manager LP lifted its position in AutoNation by 56.0% during the second quarter. Engineers Gate Manager LP now owns 39,379 shares of the company's stock valued at $7,316,000 after buying an additional 14,134 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new stake in AutoNation during the second quarter worth approximately $3,474,000. Jupiter Topco LLC acquired a new stake in shares of AutoNation in the second quarter worth $2,000,000. Hsbc Holdings PLC increased its position in shares of AutoNation by 967.8% in the second quarter. Hsbc Holdings PLC now owns 18,750 shares of the company's stock worth $3,483,000 after acquiring an additional 16,994 shares in the last quarter. Finally, PDT Partners LLC acquired a new stake in shares of AutoNation in the second quarter worth $2,824,000. Hedge funds and other institutional investors own 94.62% of the company's stock.

About AutoNation

AutoNation, Inc is an automotive retailer headquartered in Fort Lauderdale, Florida. The company sells new and used vehicles through a network of franchised dealerships representing a range of major automotive brands, as well as through digital retailing channels.

In addition to vehicle sales, AutoNation provides automotive maintenance and repair, parts, collision repair, vehicle protection products, financing assistance and other related services. Its operations support customers throughout the vehicle ownership cycle, from purchase and financing to routine service and repairs.

The company traces its origins to Republic Industries, which entered the automotive retail business in the 1990s and adopted the AutoNation name in 1998.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.