Asbury Automotive Group (NYSE:ABG) Stock Jumps 6.9% – Should You Buy?

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

Analysts Set New Price Targets

ABG has been the topic of several recent analyst reports. Barclays reissued a “reduce” rating on shares of Asbury Automotive Group in a research report on Tuesday, October 6th. 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. Citigroup lifted their price target on shares of 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 price target on Asbury Automotive Group from $230.00 to $184.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. Finally, JPMorgan Chase & Co. reduced their price target on Asbury Automotive Group from $190.00 to $185.00 and set an “underweight” rating for the company in a research report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $214.00.

Asbury Automotive Group Price Performance

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 stock has a 50 day simple moving average of $194.88 and a 200-day simple moving average of $200.35. The firm has a market cap of $3.06 billion, a PE ratio of 6.37, a price-to-earnings-growth ratio of 0.67 and a beta of 0.78.

Asbury Automotive Group (NYSE:ABG) last released its quarterly earnings data on Tuesday, July 28th. The company reported $6.82 earnings per share for the quarter, topping analysts’ consensus estimates of $6.31 by $0.51. Asbury Automotive Group had a return on equity of 12.72% and a net margin of 2.83%. The firm had revenue of $4.38 billion during the quarter, compared to analyst estimates of $4.49 billion. During the same quarter in the prior year, the company posted $7.43 earnings per share. The business’s quarterly revenue was up .3% compared to the same quarter last year. Equities analysts anticipate that Asbury Automotive Group, Inc. will post 25.82 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, SVP Jed Milstein sold 948 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $250.28, for a total value of $237,265.44. Following the transaction, the senior vice president directly owned 11,259 shares of the company’s stock, valued at approximately $2,817,902.52. The trade was a 7.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.75% of the company’s stock.

Institutional Investors Weigh In On Asbury Automotive Group

A number of institutional investors have recently added to or reduced their stakes in ABG. Daytona Street Capital LLC bought a new stake in shares of Asbury Automotive Group during the third quarter valued at approximately $32,000. Global Retirement Partners LLC bought a new position in shares of Asbury Automotive Group during the second quarter worth $34,000. Allworth Financial LP purchased a new position in Asbury Automotive Group during the second quarter valued at $36,000. USA Financial Formulas purchased a new position in Asbury Automotive Group during the third quarter valued at $39,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Asbury Automotive Group during the fourth quarter valued at $54,000.

About Asbury Automotive Group

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.