Morgan Stanley has recently raised AutoNation Inc (AN) stock rating, as announced on February 29, 2024, according to Finviz. Earlier, on January 17, 2024, Evercore ISI had initiated the stock to Outperform, setting a price target of $185. JP Morgan also raised Neutral rating with a price target of $145. Additionally, JP Morgan reduced Underweight rating on February 21, 2023, with a target price of $130. Morgan Stanley analysts, in their report published on January 17, 2023, also reduced their rating and set a price target of $104 for AutoNation Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
AutoNation Inc (AN) Stock Trading Recap
On Monday, AutoNation Inc (AN) stock saw a modest uptick, ending the day at $182.36 which represents a slight increase of $1.93 or 1.07% from the prior close of $180.43. The stock opened at $181.13 and touched a low of $180.63 during the day, reaching a high of $183.74. The volume of shares traded was 0.54 million exceeding the average volume of 0.38 million.
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AN Stock Performance and Moving Averages
In recent trading, AutoNation Inc (AN) stock price has shown some volatility, fluctuating 4.76% over the last five trades and 2.38% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 28.40%, and it has gained 7.43% in the previous three months. Currently, AN is trading at 4.93%, 7.74%, and 17.25% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AN, a Consumer Cyclical sector stock, is trading -7.52% below its 52-week high but remains 47.29% above its 52-week low. The Average True Range (ATR) (14 days) of 5.45 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
AutoNation Inc’s Profitability and Valuation Ratios
AutoNation Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 4.53% and a profit margin of 2.93%, with a gross margin of 28.40%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, AutoNation Inc’s market capitalization stands at $7.24 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 9.98, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 9.33. Additionally, the Price-to-Sales Ratio is 0.27, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.31, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 35.37% of AutoNation Inc (AN)’s shares, while financial institutions hold 63.21%.
Notable insider trades include LAMPERT EDWARD S, 10% Owner at AutoNation Inc (AN), who sold 53562 shares on Jul 31 ’24, at $193.45 each, totaling $10.36 million. On Jul 15 ’24, LAMPERT EDWARD S, 10% Owner, sold 100000 shares for $176.21 each, amounting to $17.62 million. Additionally, on Jul 12 ’24, LAMPERT EDWARD S sold 23703 shares at $172.29 each, generating $4.08 million.
