AutoNation (NYSE:AN) Shares Gap Down - Should You Sell?

AutoNation, Inc. (NYSE:AN - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $163.20, but opened at $157.77. AutoNation shares last traded at $157.96, with a volume of 143,560 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have recently commented on AN. Stephens assumed coverage on shares of AutoNation in a research note on Thursday, September 12th. They issued an "overweight" rating and a $210.00 price objective for the company. JPMorgan Chase & Co. lifted their price objective on AutoNation from $160.00 to $190.00 and gave the stock a "neutral" rating in a report on Tuesday, September 10th. Bank of America reduced their price objective on shares of AutoNation from $220.00 to $215.00 and set a "buy" rating for the company in a research note on Monday, October 14th. Wells Fargo & Company dropped their target price on shares of AutoNation from $187.00 to $181.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 15th. Finally, Morgan Stanley raised shares of AutoNation from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $145.00 to $200.00 in a report on Wednesday, September 25th. Three analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $200.38.

AutoNation Trading Down 4.5 %

The stock's 50 day moving average price is $170.86 and its 200-day moving average price is $167.72. The stock has a market capitalization of $6.28 billion, a PE ratio of 7.22, a PEG ratio of 3.25 and a beta of 1.19. The company has a quick ratio of 0.21, a current ratio of 0.78 and a debt-to-equity ratio of 1.65.

AutoNation (NYSE:AN - Get Free Report) last announced its earnings results on Wednesday, July 31st. The company reported $3.99 EPS for the quarter, missing analysts' consensus estimates of $4.31 by ($0.32). The business had revenue of $6.48 billion during the quarter, compared to analyst estimates of $6.72 billion. AutoNation had a net margin of 2.93% and a return on equity of 36.50%. The business's revenue was down 5.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $6.29 earnings per share. On average, sell-side analysts expect that AutoNation, Inc. will post 17.49 earnings per share for the current fiscal year.

Insider Buying and Selling at AutoNation

In other AutoNation news, major shareholder Edward S. Lampert sold 53,562 shares of the stock in a transaction on Wednesday, July 31st. The stock was sold at an average price of $193.45, for a total transaction of $10,361,568.90. Following the completion of the transaction, the insider now directly owns 3,825,838 shares of the company's stock, valued at approximately $740,108,361.10. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other AutoNation news, major shareholder Edward S. Lampert sold 39,194 shares of the stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $183.43, for a total transaction of $7,189,355.42. Following the completion of the sale, the insider now directly owns 3,786,144 shares of the company's stock, valued at approximately $694,492,393.92. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Edward S. Lampert sold 53,562 shares of the business's stock in a transaction dated Wednesday, July 31st. The stock was sold at an average price of $193.45, for a total value of $10,361,568.90. Following the completion of the transaction, the insider now owns 3,825,838 shares in the company, valued at approximately $740,108,361.10. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 93,256 shares of company stock valued at $17,641,954. Company insiders own 0.74% of the company's stock.

Institutional Investors Weigh In On AutoNation

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Board of Administration of Florida Retirement System boosted its holdings in AutoNation by 54.1% during the first quarter. State Board of Administration of Florida Retirement System now owns 51,743 shares of the company's stock worth $8,568,000 after purchasing an additional 18,157 shares during the last quarter. Mutual Advisors LLC bought a new stake in shares of AutoNation in the first quarter valued at about $1,484,000. Diversified Trust Co purchased a new stake in shares of AutoNation during the second quarter worth about $838,000. BOKF NA grew its stake in AutoNation by 39.1% in the 1st quarter. BOKF NA now owns 53,461 shares of the company's stock valued at $8,808,000 after acquiring an additional 15,015 shares during the period. Finally, Caxton Associates LP acquired a new stake in shares of AutoNation during the 1st quarter worth about $1,083,000. 94.62% of the stock is owned by institutional investors.

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.