Prudential Financial Inc. Increases Holdings in AutoNation, Inc. $AN

Prudential Financial Inc. raised its stake in AutoNation, Inc. (NYSE:AN) by 282.5% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 15,644 shares of the company’s stock after buying an additional 11,554 shares during the quarter. Prudential Financial Inc.’s holdings in AutoNation were worth $3,108,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Paradigm Asset Management Co. LLC purchased a new position in AutoNation during the second quarter worth about $1,251,000. Allworth Financial LP increased its holdings in shares of AutoNation by 873.3% during the 2nd quarter. Allworth Financial LP now owns 4,886 shares of the company’s stock worth $971,000 after buying an additional 4,384 shares during the last quarter. 111 Capital purchased a new stake in shares of AutoNation during the 2nd quarter valued at approximately $208,000. Voya Investment Management LLC lifted its holdings in AutoNation by 2.9% in the first quarter. Voya Investment Management LLC now owns 3,176 shares of the company’s stock valued at $514,000 after acquiring an additional 89 shares during the last quarter. Finally, Maryland State Retirement & Pension System purchased a new position in AutoNation in the second quarter worth approximately $236,000. 94.62% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Wall Street Zen downgraded AutoNation from a “buy” rating to a “hold” rating in a research report on Saturday, September 13th. Barclays started coverage on AutoNation in a research report on Tuesday, November 11th. They set an “overweight” rating and a $250.00 price objective for the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of AutoNation in a research report on Monday. Evercore ISI increased their target price on shares of AutoNation from $240.00 to $300.00 and gave the stock an “outperform” rating in a research note on Monday, November 24th. Finally, Morgan Stanley boosted their price target on shares of AutoNation from $220.00 to $225.00 and gave the company an “overweight” rating in a research note on Wednesday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $243.11.

AutoNation Stock Performance

Shares of AutoNation stock opened at $207.47 on Wednesday. The stock has a market capitalization of $7.57 billion, a price-to-earnings ratio of 12.20, a price-to-earnings-growth ratio of 0.96 and a beta of 0.89. 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 business has a 50-day moving average of $207.68 and a 200 day moving average of $204.90. AutoNation, Inc. has a 12 month low of $148.33 and a 12 month high of $228.92.

AutoNation (NYSE:AN) last issued its quarterly earnings results on Thursday, October 23rd. The company reported $5.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.85 by $0.16. AutoNation had a net margin of 2.38% and a return on equity of 31.84%. The business had revenue of $7.04 billion for the quarter, compared to analysts’ expectations of $6.74 billion. During the same quarter in the prior year, the company earned $4.02 earnings per share. The business’s quarterly revenue was up 6.9% on a year-over-year basis. As a group, sell-side analysts forecast that AutoNation, Inc. will post 18.15 earnings per share for the current year.

AutoNation announced that its board has authorized a share repurchase program on Friday, October 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 13.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

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.