AutoNation (NYSE:AN) Stock Falls 5.7% – Should You Sell?

Shares of AutoNation, Inc. (NYSE:AN) fell 5.7% during trading on Wednesday. The stock traded as low as $153.11 and last traded at $152.67. Approximately 380,334 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 447,882 shares. The stock had previously closed at $161.89.

Analyst Ratings Changes

A number of research firms have issued reports on AN. Barclays decreased their target price on AutoNation from $260.00 to $230.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 6th. Stephens increased their price objective on AutoNation from $220.00 to $232.00 and gave the company an “equal weight” rating in a report on Monday, August 10th. Citigroup lowered their price target on shares of AutoNation from $290.00 to $255.00 and set a “buy” rating for the company in a report on Monday, September 21st. Wells Fargo & Company lifted their price objective on AutoNation from $202.00 to $224.00 and gave the stock an “equal weight” rating in a research report on Monday, August 3rd. Finally, Weiss Ratings lowered shares of AutoNation from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, September 21st. Eight analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $230.00.

AutoNation Price Performance

The business has a 50-day moving average of $183.41 and a 200 day moving average of $192.80. The firm has a market capitalization of $5.05 billion, a PE ratio of 7.07, a price-to-earnings-growth ratio of 0.79 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.

AutoNation (NYSE:AN) last released its quarterly 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 net margin of 2.82% and a return on equity of 31.24%. The business had revenue of $6.93 billion for the quarter, compared to analysts’ expectations of $7 billion. During the same period in the previous year, the company earned $2.26 earnings per share. The firm’s revenue for the quarter was down .6% compared to the same quarter last year. As a group, research analysts anticipate that AutoNation, Inc. will post 21.12 EPS for the current fiscal year.

Insider Activity at AutoNation

In related news, Director Lisa Lutoff-Perlo sold 900 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were 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 of the company’s stock, valued at approximately $1,757,580. The trade was a 10.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.40% of the stock is owned by insiders.

Hedge Funds Weigh In On AutoNation

Several institutional investors have recently bought and sold shares of AN. Engineers Gate Manager LP lifted its holdings 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 purchasing an additional 14,134 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new position in shares of AutoNation in the second quarter worth about $3,474,000. Jupiter Topco LLC purchased a new position in shares of AutoNation in the second quarter worth about $2,000,000. PDT Partners LLC purchased a new position in shares of AutoNation in the second quarter worth about $2,824,000. Finally, Hsbc Holdings PLC raised 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 valued at $3,483,000 after purchasing an additional 16,994 shares during the period. Hedge funds and other institutional investors own 94.62% of the company’s stock.

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.