AutoNation (NYSE:AN) Announces Stock Repurchase Plan

AutoNation (NYSE:AN) declared that its Board of Directors has authorized a stock repurchase program on Monday, July 19th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization allows the company to purchase up to 10.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its shares are undervalued.

Several equities analysts recently weighed in on AN shares. Truist raised their target price on shares of AutoNation from $100.00 to $110.00 and gave the company a “hold” rating in a research note on Tuesday. Morgan Stanley raised their target price on shares of AutoNation from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Thursday, April 22nd. Bank of America raised their target price on shares of AutoNation from $161.00 to $171.00 and gave the company a “buy” rating in a research note on Friday, July 16th. Benchmark raised shares of AutoNation from a “hold” rating to a “buy” rating and set a $120.00 target price for the company in a research note on Wednesday, April 28th. Finally, Truist Securities raised their target price on shares of AutoNation from $80.00 to $100.00 and gave the company a “hold” rating in a research note on Wednesday, April 21st. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the company’s stock. AutoNation currently has a consensus rating of “Hold” and an average price target of $95.63.

AutoNation stock traded up $3.47 during mid-day trading on Wednesday, hitting $117.64. 2,077,112 shares of the company’s stock traded hands, compared to its average volume of 836,365. The company has a 50 day moving average of $99.52. AutoNation has a fifty-two week low of $45.53 and a fifty-two week high of $120.90. The stock has a market capitalization of $9.47 billion, a PE ratio of 10.27, a price-to-earnings-growth ratio of 0.50 and a beta of 1.63. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.39 and a current ratio of 1.02.

AutoNation (NYSE:AN) last announced its quarterly earnings results on Sunday, July 18th. The company reported $4.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $2.02. AutoNation had a return on equity of 31.99% and a net margin of 3.98%. The business had revenue of $6.98 billion during the quarter, compared to the consensus estimate of $6.07 billion. During the same quarter last year, the firm posted $1.41 EPS. The company’s quarterly revenue was up 53.9% on a year-over-year basis. Equities research analysts forecast that AutoNation will post 10.59 EPS for the current year.

In other news, EVP C Coleman Edmunds sold 17,970 shares of AutoNation stock in a transaction on Monday, April 26th. The stock was sold at an average price of $102.58, for a total transaction of $1,843,362.60. Following the completion of the sale, the executive vice president now owns 26,199 shares of the company’s stock, valued at $2,687,493.42. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Marc G. Cannon sold 1,667 shares of AutoNation stock in a transaction on Friday, April 23rd. The stock was sold at an average price of $100.00, for a total value of $166,700.00. Following the sale, the executive vice president now directly owns 15,000 shares of the company’s stock, valued at approximately $1,500,000. The disclosure for this sale can be found here. Insiders have sold a total of 557,732 shares of company stock valued at $57,834,180 in the last ninety days. Insiders own 1.50% of the company’s stock.

About AutoNation

AutoNation, Inc, through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.

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