Auto Trader Group (LON:AUTO) Posts Earnings Results

Auto Trader Group (LON:AUTO) released its quarterly earnings results on Thursday. The company reported GBX 34.17 EPS for the quarter, Digital Look Earnings reports. Auto Trader Group had a net margin of 47.69% and a return on equity of 51.86%. The firm had revenue of £624.30 million during the quarter.

Here are the key takeaways from Auto Trader Group’s conference call:

• Auto Trader said it grew full-year revenue, operating profit, and EPS despite a tougher trading backdrop, with group revenue up 4% to GBP 585.3 million and operating profit up 4% to GBP 408 million.
• The company acknowledged a weaker second half, driven by pressure on retailer profitability, faster stock-turn, and feedback around the accelerated rollout of Deal Builder, which contributed to higher cancellations and a lower FY 2027 starting run rate.
• Management said retailer numbers, stock, and upsells have been improving since year-end and that the business has “passed the low point,” with April and May trends showing recovery in forecourts and paid stock.
• The board announced a more aggressive capital return policy, expecting to return over GBP 1 billion to shareholders across FY 2026 and FY 2027 combined, while also planning about GBP 500 million of buybacks in FY 2027.
• FY 2027 guidance calls for group operating profit of GBP 395 million to GBP 415 million, with margins at least maintained and high single-digit EPS growth supported by buybacks, while Autorama is expected to move to a small profit and be reported as part of one operating segment.

Auto Trader Group Stock Performance

Shares of LON:AUTO traded down GBX 29 during mid-day trading on Thursday, reaching GBX 467.30. 32,566,344 shares of the company traded hands, compared to its average volume of 32,305,139. The company’s 50 day moving average price is GBX 488.77 and its 200-day moving average price is GBX 549.88. The firm has a market cap of £3.81 billion, a PE ratio of 14.05, a PEG ratio of 3.99 and a beta of 0.69. Auto Trader Group has a 52 week low of GBX 445.80 and a 52 week high of GBX 920. The company has a debt-to-equity ratio of 10.48, a current ratio of 1.77 and a quick ratio of 1.50.

Analysts Set New Price Targets

Several analysts recently issued reports on AUTO shares. Deutsche Bank Aktiengesellschaft cut their target price on shares of Auto Trader Group from GBX 850 to GBX 816 and set a “buy” rating for the company in a research report on Friday, March 27th. Citigroup dropped their price target on shares of Auto Trader Group from GBX 880 to GBX 526 and set a “neutral” rating on the stock in a research note on Thursday, April 9th. JPMorgan Chase & Co. cut their price objective on shares of Auto Trader Group from GBX 630 to GBX 515 and set an “underweight” rating for the company in a research report on Thursday, March 19th. Finally, UBS Group restated a “sell” rating and issued a GBX 470 price objective on shares of Auto Trader Group in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of GBX 598.40.

Insider Buying and Selling

In other news, insider Matt Davies purchased 5,532 shares of the stock in a transaction on Thursday, May 21st. The shares were acquired at an average price of GBX 452 per share, with a total value of £25,004.64. Also, insider Amanda James purchased 5,477 shares of the company’s stock in a transaction on Thursday, May 21st. The stock was purchased at an average price of GBX 454 per share, with a total value of £24,865.58. 3.31% of the stock is currently owned by company insiders.

Auto Trader Group Company Profile

Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry. Listed on the London Stock Exchange since March 2015, the company is a member of the FTSE 100 Index.

Autotrader’s purpose is Driving Change Together. Responsibly. The company uses advanced data science, artificial intelligence and scalable technology to improve how vehicles are bought and sold, while building stronger partnerships with its customers and the wider automotive ecosystem.