AutoNation (NYSE:AN) Shares Gap Down After Earnings Miss

AutoNation, Inc. (NYSE:AN) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $163.20, but opened at $157.77. AutoNation shares last traded at $157.96, with a volume of 143,560 shares traded.

The company reported $4.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.48 by ($0.46). AutoNation had a return on equity of 36.50% and a net margin of 2.93%. The company had revenue of $6.59 billion during the quarter, compared to analyst estimates of $6.73 billion.

Analyst Ratings Changes

A number of analysts have commented on the stock. JPMorgan Chase & Co. upped their price objective on shares of AutoNation from $160.00 to $190.00 and gave the company a “neutral” rating in a research note on Tuesday, September 10th. Stephens assumed coverage on shares of AutoNation in a research note on Thursday, September 12th. They issued an “overweight” rating and a $210.00 price objective for the company. Bank of America lowered their price objective on shares of AutoNation from $220.00 to $215.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Morgan Stanley upgraded AutoNation from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $145.00 to $200.00 in a report on Wednesday, September 25th. Finally, Wells Fargo & Company lowered their price target on AutoNation from $187.00 to $181.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 15th. Three analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $200.38.

Insiders Place Their Bets

In related news, major shareholder Edward S. Lampert sold 500 shares of the business’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $182.06, for a total value of $91,030.00. Following the completion of the sale, the insider now owns 3,825,338 shares of the company’s stock, valued at approximately $696,441,036.28. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In other AutoNation news, major shareholder Edward S. Lampert sold 39,194 shares of the business’s stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $183.43, for a total value of $7,189,355.42. Following the completion of the sale, the insider now owns 3,786,144 shares of the company’s stock, valued at $694,492,393.92. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Edward S. Lampert sold 500 shares of the stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $182.06, for a total value of $91,030.00. Following the transaction, the insider now directly owns 3,825,338 shares in the company, valued at approximately $696,441,036.28. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 93,256 shares of company stock valued at $17,641,954 in the last three months. Insiders own 0.74% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC increased its position in AutoNation by 2.2% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 2,845 shares of the company’s stock worth $509,000 after buying an additional 62 shares during the period. Concurrent Investment Advisors LLC increased its position in AutoNation by 1.2% during the second quarter. Concurrent Investment Advisors LLC now owns 5,436 shares of the company’s stock worth $866,000 after acquiring an additional 65 shares during the period. OLD National Bancorp IN raised its stake in AutoNation by 2.2% during the 3rd quarter. OLD National Bancorp IN now owns 3,100 shares of the company’s stock valued at $555,000 after purchasing an additional 68 shares during the last quarter. Sei Investments Co. boosted its holdings in AutoNation by 0.5% in the 2nd quarter. Sei Investments Co. now owns 15,130 shares of the company’s stock valued at $2,413,000 after purchasing an additional 72 shares during the period. Finally, Retirement Systems of Alabama grew its position in AutoNation by 0.3% in the 1st quarter. Retirement Systems of Alabama now owns 32,570 shares of the company’s stock worth $5,393,000 after purchasing an additional 84 shares during the last quarter. Institutional investors own 94.62% of the company’s stock.

AutoNation Stock Performance

The firm’s fifty day moving average price is $170.48 and its 200-day moving average price is $167.75. The company has a market cap of $6.27 billion, a P/E ratio of 7.39, a P/E/G ratio of 3.25 and a beta of 1.19. The company has a current ratio of 0.78, a quick ratio of 0.21 and a debt-to-equity ratio of 1.65.

AutoNation Company Profile

AutoNation, Inc, through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.