Stephens Forecasts Strong Price Appreciation for AutoNation (NYSE:AN) Stock

AutoNation (NYSE:AN) had its price objective increased by equities research analysts at Stephens from $228.00 to $232.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Stephens’ price target suggests a potential upside of 10.41% from the stock’s previous close.

A number of other research firms also recently issued reports on AN. Barclays cut their target price on shares of AutoNation from $250.00 to $245.00 and set an “overweight” rating for the company in a research report on Wednesday, January 21st. JPMorgan Chase & Co. upgraded AutoNation from a “neutral” rating to an “overweight” rating and set a $235.00 price objective for the company in a report on Friday, January 16th. Morgan Stanley boosted their target price on AutoNation from $225.00 to $233.00 and gave the company an “overweight” rating in a research note on Monday, December 8th. Citigroup raised their price target on AutoNation from $265.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, October 30th. Finally, Evercore lifted their price target on AutoNation from $240.00 to $300.00 and gave the company an “outperform” rating in a report on Monday, November 24th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $248.11.

AutoNation Trading Up 1.7%

NYSE:AN opened at $210.12 on Wednesday. The stock has a market cap of $7.66 billion, a PE ratio of 12.33 and a beta of 0.88. AutoNation has a fifty-two week low of $148.33 and a fifty-two week high of $228.92. The company has a debt-to-equity ratio of 1.93, a current ratio of 0.79 and a quick ratio of 0.20. The stock’s 50-day moving average is $211.87 and its two-hundred day moving average is $210.42.

AutoNation (NYSE:AN) last posted its quarterly earnings results on Friday, February 6th. The company reported $5.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.91 by $0.17. The business had revenue of $6.93 billion during the quarter, compared to analyst estimates of $7.21 billion. AutoNation had a net margin of 2.35% and a return on equity of 31.30%. The firm’s revenue was down 3.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.97 earnings per share. As a group, equities research analysts forecast that AutoNation will post 18.15 earnings per share for the current fiscal year.

AutoNation announced that its board has initiated a stock buyback plan on Friday, October 31st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 13.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada lifted its stake in AutoNation by 8.9% in the 1st quarter. Royal Bank of Canada now owns 18,953 shares of the company’s stock valued at $3,070,000 after acquiring an additional 1,551 shares in the last quarter. United Services Automobile Association bought a new position in shares of AutoNation during the 1st quarter worth approximately $265,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of AutoNation by 10.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 98,610 shares of the company’s stock valued at $15,967,000 after purchasing an additional 9,656 shares during the last quarter. Focus Partners Wealth lifted its position in shares of AutoNation by 17.3% in the first quarter. Focus Partners Wealth now owns 3,472 shares of the company’s stock worth $562,000 after purchasing an additional 511 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings 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 last quarter. 94.62% of the stock is owned by institutional investors and hedge funds.

AutoNation Company Profile

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.