Share Repurchase Program Announced by AutoNation (NYSE:AN) Board of Directors

AutoNation (NYSE:AN) announced that its board has initiated a share 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 repurchase up to 10.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

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

Shares of NYSE:AN traded up $3.47 during midday trading on Wednesday, hitting $117.64. The stock had a trading volume of 2,077,112 shares, compared to its average volume of 836,365. AutoNation has a 12 month low of $45.53 and a 12 month high of $120.90. The company has a current ratio of 1.02, a quick ratio of 0.39 and a debt-to-equity ratio of 0.56. The business has a 50-day moving average of $99.52. The firm has a market capitalization of $9.47 billion, a P/E ratio of 10.27, a P/E/G ratio of 0.50 and a beta of 1.63.

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

In other AutoNation news, EVP C Coleman Edmunds sold 17,970 shares of the firm’s 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 approximately $2,687,493.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Marc G. Cannon sold 1,667 shares of the firm’s stock in a transaction on Friday, April 23rd. The shares were 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.

Featured Story: Understanding the different types of bonds

Receive News & Ratings for AutoNation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AutoNation and related companies with MarketBeat.com's FREE daily email newsletter.