AutoNation (NYSE:AN) Shares Climb 7.6% Following Strong Earnings

AutoNation, Inc. (NYSE:AN)’s stock price was up 7.6% during trading on Friday following a stronger than expected earnings report. The company traded as high as $192.99 and last traded at $182.2820. 245,717 shares traded hands during trading, a decline of 46% from the average session volume of 453,402 shares. The stock had previously closed at $169.34.

The company reported $5.11 earnings per share for the quarter, topping analysts’ consensus estimates of $5.08 by $0.03. AutoNation had a net margin of 2.82% and a return on equity of 31.24%. The firm had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.93 billion. During the same period in the previous year, the firm posted $5.01 EPS. The business’s quarterly revenue was down .4% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of AutoNation from $202.00 to $224.00 and gave the stock an “equal weight” rating in a research note on Monday, August 3rd. Stephens lifted their price target on AutoNation from $220.00 to $232.00 and gave the company an “equal weight” rating in a research report on Monday, August 10th. Citigroup dropped their price objective on shares of AutoNation from $290.00 to $255.00 and set a “buy” rating on the stock in a research note on Monday, September 21st. Seaport Research Partners reiterated a “buy” rating and issued a $255.00 target price on shares of AutoNation in a research note on Monday, August 3rd. Finally, Morgan Stanley downgraded shares of AutoNation from an “overweight” rating to a “negative” rating in a report on Monday, October 5th. Eight equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $230.00.

Insider Transactions at AutoNation

In related news, Director Lisa Lutoff-Perlo sold 900 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $220.00, for a total value of $198,000.00. Following the sale, the director owned 7,989 shares in the company, valued at approximately $1,757,580. The trade was a 10.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AutoNation

Several large investors have recently added to or reduced their stakes in AN. BlackRock Inc. acquired a new stake in shares of AutoNation in the second quarter valued at $438,689,000. Bank of America Corp DE acquired a new stake in shares of AutoNation in the 2nd quarter valued at $36,925,000. Bank of New York Mellon Corp purchased a new position in shares of AutoNation in the 2nd quarter valued at about $33,673,000. Hsbc Holdings PLC grew its position in shares of AutoNation by 3,322.8% in the 4th quarter. Hsbc Holdings PLC now owns 62,946 shares of the company’s stock valued at $12,995,000 after buying an additional 61,107 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in AutoNation by 4.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,478,991 shares of the company’s stock worth $288,784,000 after acquiring an additional 56,641 shares in the last quarter. 94.62% of the stock is owned by hedge funds and other institutional investors.

AutoNation Stock Up 7.2%

The firm’s 50 day simple moving average is $177.25 and its 200-day simple moving average is $193.90. The company has a market cap of $6.00 billion, a price-to-earnings ratio of 8.42, a P/E/G ratio of 0.81 and a beta of 0.81. The company has a debt-to-equity ratio of 2.68, a current ratio of 0.78 and a quick ratio of 0.18.

About AutoNation

AutoNation, Inc is a U.S.-based automotive retailer that sells new and used vehicles through a network of dealerships and online sales channels. The company represents a range of domestic, import and luxury automotive brands, offering passenger cars, trucks and sport utility vehicles.

In addition to vehicle sales, AutoNation provides automotive maintenance and repair, parts, collision-repair services, vehicle protection products and financing options. Its retail operations include traditional dealerships as well as AutoNation USA locations, which focus primarily on used vehicles and related services.

Founded in 1996 as Republic Industries, the company adopted the AutoNation name as it developed its automotive retail business.