AutoNation (NYSE:AN) Stock Price Breaks Above 50 Day Moving Average – Time to Sell?

AutoNation, Inc. (NYSE:AN)’s share price crossed above its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $176.82 and traded as high as $192.99. AutoNation shares last traded at $179.05, with a volume of 1,244,844 shares trading hands.

More AutoNation News

Here are the key news stories impacting AutoNation this week:

• Positive Sentiment: AutoNation reported third-quarter adjusted earnings of $5.11 per share, above the $5.08 consensus estimate, while revenue of $7.01 billion exceeded expectations of $6.93 billion. Earnings also improved from $5.01 per share a year earlier. AutoNation third-quarter earnings report
• Positive Sentiment: Record After-Sales gross profit and sharply higher AutoNation Finance income—$15.4 million versus $1.5 million a year earlier—helped support results despite a challenging vehicle market. AutoNation service resilience article
• Positive Sentiment: The company repurchased approximately $620 million of stock during the first nine months and received an additional $1 billion authorization. Management’s view that AN shares are undervalued could provide continued support for the stock and boost per-share results. Why AutoNation stock popped after earnings
• Neutral Sentiment: Revenue was essentially flat year over year at roughly $7.0 billion. Liquidity stood at $1.5 billion, including $51 million in cash, while the company maintained strong reported returns, including a 31.24% return on equity.
• Negative Sentiment: GAAP net income fell 25% to $162.3 million, operating income declined 16%, and GAAP diluted EPS decreased to $4.87 from $5.65. Gross profit also slipped 2% year over year. AutoNation third-quarter revenue and net income report
• Negative Sentiment: Chief Executive Officer Mike Manley warned that economic pressure is causing consumers to delay vehicle repairs, creating a risk for future After-Sales demand even though that division was resilient this quarter. AutoNation CEO warns about delayed car repairs

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Stephens raised their price target on shares of AutoNation from $220.00 to $232.00 and gave the stock an “equal weight” rating in a 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 report on Monday, September 21st. Argus boosted their price objective on shares of AutoNation from $241.00 to $246.00 and gave the company a “buy” rating in a report on Tuesday, August 11th. Barclays cut 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. Finally, JPMorgan Chase & Co. reduced their target price on AutoNation from $210.00 to $185.00 and set an “overweight” rating for the company in a research note on Tuesday, October 6th. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $230.00.

AutoNation Price Performance

The company has a debt-to-equity ratio of 2.68, a current ratio of 0.78 and a quick ratio of 0.18. The stock has a market cap of $5.92 billion, a price-to-earnings ratio of 8.29, a P/E/G ratio of 0.83 and a beta of 0.81. The stock has a fifty day moving average of $176.82 and a 200 day moving average of $193.73.

AutoNation (NYSE:AN) last issued its earnings results on Friday, October 30th. The company reported $5.11 EPS for the quarter, beating analysts’ consensus estimates of $5.08 by $0.03. AutoNation had a return on equity of 31.24% and a net margin of 2.82%. The firm had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.93 billion. During the same quarter in the prior year, the firm earned $5.01 earnings per share. AutoNation’s revenue for the quarter was down .4% on a year-over-year basis. On average, analysts expect that AutoNation, Inc. will post 21.07 EPS for the current fiscal year.

Insider Transactions at AutoNation

In other AutoNation news, Director Lisa Lutoff-Perlo sold 900 shares of AutoNation stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $220.00, for a total transaction of $198,000.00. Following the completion of the sale, the director directly owned 7,989 shares in the company, valued at approximately $1,757,580. The trade was a 10.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.40% of the company’s stock.

Institutional Trading of AutoNation

A number of hedge funds and other institutional investors have recently made changes to their positions in AN. BlackRock Inc. purchased a new position in shares of AutoNation during the second quarter worth $438,689,000. Dimensional Fund Advisors LP boosted its holdings in AutoNation by 4.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,478,991 shares of the company’s stock valued at $288,784,000 after purchasing an additional 56,641 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in AutoNation by 8.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 383,615 shares of the company’s stock valued at $74,905,000 after purchasing an additional 30,725 shares during the last quarter. Bank of America Corp DE purchased a new stake in AutoNation in the second quarter valued at $36,925,000. Finally, Wedge Capital Management L L P NC grew its position in AutoNation by 8.2% during the 2nd quarter. Wedge Capital Management L L P NC now owns 186,969 shares of the company’s stock worth $34,737,000 after purchasing an additional 14,115 shares during the period. Institutional investors and hedge funds 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.