AutoNation (NYSE:AN) Shares Gap Up – Here’s Why

AutoNation, Inc. (NYSE:AN)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $199.49, but opened at $206.22. AutoNation shares last traded at $197.3850, with a volume of 35,678 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have weighed in on AN shares. Wells Fargo & Company upped their target price on AutoNation from $202.00 to $224.00 and gave the stock an “equal weight” rating in a research note on Monday, August 3rd. Northcoast Research upgraded AutoNation from a “neutral” rating to a “buy” rating and set a $240.00 price objective for the company in a research report on Tuesday, July 14th. Argus raised their price objective on AutoNation from $241.00 to $246.00 and gave the company a “buy” rating in a research note on Tuesday, August 11th. Citigroup boosted their target price on AutoNation from $287.00 to $290.00 and gave the stock a “buy” rating in a research note on Tuesday, August 4th. Finally, Morgan Stanley raised their price target on shares of AutoNation from $240.00 to $250.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. Ten investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, AutoNation presently has an average rating of “Moderate Buy” and a consensus target price of $250.00.

AutoNation Stock Performance

The company’s 50-day simple moving average is $200.60 and its 200-day simple moving average is $197.79. The stock has a market capitalization of $6.56 billion, a price-to-earnings ratio of 9.20, a PEG ratio of 0.83 and a beta of 0.71. 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 issued its quarterly earnings results on Friday, July 31st. The company reported $5.56 earnings per share for the quarter, beating the consensus estimate of $5.48 by $0.08. AutoNation had a return on equity of 31.24% and a net margin of 2.82%.The company had revenue of $6.93 billion during the quarter, compared to analysts’ expectations of $7 billion. During the same quarter in the prior year, the firm posted $2.26 earnings per share. The business’s quarterly revenue was down .6% on a year-over-year basis. On average, analysts expect that AutoNation, Inc. will post 21.69 EPS for the current year.

Insiders Place Their Bets

In other AutoNation news, Director Lisa Lutoff-Perlo sold 900 shares of the firm’s 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 transaction, the director owned 7,989 shares in the company, valued at approximately $1,757,580. This trade represents a 10.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On AutoNation

Hedge funds and other institutional investors have recently bought and sold shares of the company. Employees Retirement System of Texas acquired a new stake in AutoNation during the 3rd quarter worth about $48,000. Geneos Wealth Management Inc. grew its stake in AutoNation by 37.4% during the first quarter. Geneos Wealth Management Inc. now owns 235 shares of the company’s stock worth $38,000 after purchasing an additional 64 shares during the period. Smartleaf Asset Management LLC increased its holdings in AutoNation by 49.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 259 shares of the company’s stock worth $54,000 after purchasing an additional 86 shares in the last quarter. Bessemer Group Inc. increased its holdings in AutoNation by 33.0% in the first quarter. Bessemer Group Inc. now owns 306 shares of the company’s stock worth $59,000 after purchasing an additional 76 shares in the last quarter. Finally, Monetary Solutions Ltd acquired a new position in AutoNation in the fourth quarter valued at approximately $64,000. Institutional investors and hedge funds own 94.62% of the company’s stock.

About AutoNation

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.