AutoNation, Inc. (NYSE:AN) has received a consensus rating of “Moderate Buy” from eleven brokerages currently covering the stock, according to Marketbeat Ratings. The analysts’ recommendations include three hold ratings, seven buy ratings, and one strong buy rating. The average 12-month target price stands at $244.00, reflecting a positive outlook on the company’s performance.
Several research reports have recently been released regarding AutoNation’s stock. On September 10, 2023, Bank of America revised its target price from $255.00 to $250.00 while maintaining a “buy” rating. Meanwhile, Weiss Ratings reiterated a “buy (b)” rating for AutoNation on December 15, 2023. On November 24, Evercore ISI increased its target price from $240.00 to $300.00 and assigned an “outperform” rating. In contrast, Wells Fargo & Company lowered its price target from $221.00 to $220.00 and set an “equal weight” rating on the stock. On September 13, Wall Street Zen downgraded AutoNation from a “buy” rating to a “hold” rating.
AutoNation’s latest quarterly earnings report, released on October 23, 2023, showed an earnings per share (EPS) of $5.01, surpassing analysts’ expectations of $4.85 by $0.16. The company reported quarterly revenues of $7.04 billion, significantly exceeding analyst estimates of $6.74 billion. The firm’s return on equity was recorded at 31.84%, with a net margin of 2.38%. Year-over-year, AutoNation’s revenue increased by 6.9%, with the previous year’s EPS recorded at $4.02. Analysts predict that AutoNation will achieve an EPS of 18.15 for the current fiscal year.
On October 31, 2023, AutoNation’s Board of Directors approved a stock buyback program allowing the company to repurchase $1.00 billion in shares. This initiative permits the company to acquire up to 13.7% of its stock through open market purchases, often interpreted as a sign that the board considers its shares undervalued.
In terms of institutional investment, several hedge funds and investors have recently adjusted their stakes in AutoNation. Vanguard Group Inc. increased its holdings by 1.1% during the third quarter, now owning 3,176,626 shares valued at approximately $694,950,000. Brave Warrior Advisors LLC has boosted its position by 7.5%, now holding 1,214,510 shares worth $241,262,000. Additionally, Invesco Ltd. raised its stake by 11.2%, owning 907,163 shares valued at $198,460,000. AQR Capital Management LLC increased its holdings by 10.5% during the same period, now owning 697,927 shares valued at $151,967,000. Lastly, Holocene Advisors LP lifted its stake by 38.3%, owning 548,677 shares worth $120,034,000. Institutional and hedge fund investors collectively own 94.62% of AutoNation’s stock.
Founded in 1996 by entrepreneur H. Wayne Huizenga, AutoNation is the largest automotive retailer in the United States. The company operates a network of franchised new vehicle dealerships, pre-owned vehicle superstores, and collision-repair centers, providing a wide array of automotive products and services. These offerings include the sale of new cars, certified pre-owned vehicles, financing, insurance, and maintenance services. Headquartered in Fort Lauderdale, Florida, AutoNation continues to play a significant role in the automotive retail sector.
