AutoNation (NYSE:AN) Shares Gap Down on Disappointing Earnings

AutoNation, Inc. (NYSE:AN) shares gapped down before the market opened 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 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 business had revenue of $6.59 billion for the quarter, compared to analyst estimates of $6.73 billion.

Analysts Set New Price Targets

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

Insider Activity at AutoNation

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

Institutional Trading of AutoNation

A number of institutional investors have recently bought and sold shares of AN. Custom Index Systems LLC boosted its holdings in AutoNation by 79.7% during the third quarter. Custom Index Systems LLC now owns 2,262 shares of the company’s stock worth $405,000 after buying an additional 1,003 shares during the last quarter. State of Alaska Department of Revenue grew its holdings in AutoNation by 7.3% during the third quarter. State of Alaska Department of Revenue now owns 3,008 shares of the company’s stock valued at $538,000 after purchasing an additional 205 shares during the period. Modera Wealth Management LLC bought a new stake in AutoNation in the third quarter valued at approximately $201,000. Wealth Enhancement Advisory Services LLC raised its holdings in AutoNation by 2.2% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 2,845 shares of the company’s stock worth $509,000 after purchasing an additional 62 shares during the period. Finally, Arkadios Wealth Advisors bought a new position in shares of AutoNation during the third quarter worth $201,000. Institutional investors and hedge funds own 94.62% of the company’s stock.

AutoNation Stock Down 4.5 %

The company has a current ratio of 0.78, a quick ratio of 0.21 and a debt-to-equity ratio of 1.65. 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 price-to-earnings ratio of 7.39, a price-to-earnings-growth ratio of 3.25 and a beta of 1.19.

About AutoNation

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.