AutoNation (NYSE:AN) Stock Falls 5.7% – Here’s Why

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

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on AN shares. Zacks Research downgraded AutoNation from a “hold” rating to a “strong sell” rating in a research report on Friday, October 16th. Seaport Research Partners reaffirmed a “buy” rating and issued a $255.00 price target on shares of AutoNation in a report on Monday, August 3rd. Barclays reduced their price objective on AutoNation from $260.00 to $230.00 and set an “overweight” rating for the company in a research report on Tuesday, October 6th. Argus upped their target price on AutoNation from $241.00 to $246.00 and gave the company a “buy” rating in a research note on Tuesday, August 11th. Finally, Wells Fargo & Company raised their target price on AutoNation from $202.00 to $224.00 and gave the stock an “equal weight” rating in a research report on Monday, August 3rd. Eight research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, AutoNation currently has an average rating of “Hold” and a consensus target price of $230.00.

AutoNation Trading Down 0.8%

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 company has a market cap of $5.31 billion, a price-to-earnings ratio of 7.43, a price-to-earnings-growth ratio of 0.75 and a beta of 0.81. The business has a 50 day simple moving average of $181.35 and a 200 day simple moving average of $192.23.

AutoNation (NYSE:AN) last issued its quarterly earnings results on Friday, July 31st. The company reported $5.56 EPS 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 company had revenue of $6.93 billion during the quarter, compared to analysts’ expectations of $7 billion. During the same quarter in the previous year, the company earned $2.26 EPS. AutoNation’s revenue was down .6% on a year-over-year basis. As a group, equities analysts forecast that AutoNation, Inc. will post 21.12 EPS for the current year.

Insider Buying and Selling at AutoNation

In other news, Director Lisa Lutoff-Perlo sold 900 shares of the stock in a transaction 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 owned 7,989 shares of the company’s stock, valued at $1,757,580. This represents a 10.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.40% of the stock is owned by company insiders.

Institutional Trading of AutoNation

A number of hedge funds and other institutional investors have recently made changes to their positions in AN. Redwood Investment Management LLC grew its position in AutoNation by 1.1% in the first quarter. Redwood Investment Management LLC now owns 5,372 shares of the company’s stock valued at $1,049,000 after purchasing an additional 61 shares in the last quarter. Davis Capital Management boosted its stake in shares of AutoNation by 0.7% during the 3rd quarter. Davis Capital Management now owns 9,712 shares of the company’s stock worth $1,529,000 after buying an additional 68 shares during the last quarter. Evergreen Capital Management LLC boosted its stake in shares of AutoNation by 4.5% during the 3rd quarter. Evergreen Capital Management LLC now owns 1,620 shares of the company’s stock worth $255,000 after buying an additional 70 shares during the last quarter. Bessemer Group Inc. grew its holdings in shares of AutoNation by 33.0% in the 1st quarter. Bessemer Group Inc. now owns 306 shares of the company’s stock valued at $59,000 after acquiring an additional 76 shares in the last quarter. Finally, Parkside Financial Bank & Trust grew its holdings in shares of AutoNation by 73.9% in the 2nd quarter. Parkside Financial Bank & Trust now owns 193 shares of the company’s stock valued at $36,000 after acquiring an additional 82 shares in the last quarter. 94.62% of the stock is currently owned by institutional investors and hedge funds.

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.