AutoNation stock: buy or sell?

AN stock price: $50.51 -0.39% At close on September 20th, 2019

Updated on:
September 20th, 2019

0

AutoNation decreased a lame -0.39% and closed at $50.51.

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.

Should I buy AutoNation stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, AutoNation stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AN will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is AutoNation stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we gathered 6 ratings published for AN stock in the last 30 days.

The general sentiment of these ratings is bearish for AN stock, with 3 negative ratings.
Is AN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-2Morgan Stanleyn/aUnderweight
2019-5-6Morgan Stanleyn/aUnderweight
2019-4-30SunTrust Banksn/aHold
2019-2-26Bank of AmericaBuyBuy
2019-2-19JPMorgan Chase & Co.n/aUnderweight
2019-2-13Seaport Global Securitiesn/aNeutral

AutoNation stock analysis

Daily outlook

AutoNation shares decreased -0.39% to $50.51 today.

AutoNation closed today at $50.51 and decreased a lame -0.39%. Since July when SMA100d and SMA200d crossed up, AN price gained $8.17 per share (19.30%). AN is retaking the upward trend marking a new rising bottom heading to break out over $52.56. On May AN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock.

AN stock chart (daily)

Weekly outlook

AutoNation shares stayed steady 0.46% this week, ending at $50.51. Counting this, it's been 4 climbing weeks in a row, soaring a 8.68%.

AutoNation stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since mid June when SMA20w and SMA40w crossed up, AN price gained $9.26 per share (22.45%). Since late April when AN stock price broke up the SMA40w line, it gained $12.68 (33.52%).

AN stock chart (weekly)

AutoNation stock price history

AutoNation IPO was on May 11th, 1990 at $2.80 per share1. Since then, AN stock surged a 1,703.90%, with an average of 58.80% per year. If you had invested $1,000 in AutoNation stock in 1990, it would worth $17,039.00 today.

1: Adjusted price after possible price splits or reverse-splits.

AutoNation stock historical price chart

AN stock reached 52-week highs on Sep 12th at $52.56, and all-time highs 2015-04-22 with a price of 67.5.

AutoNation stock price target is $42.60

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 5 price forecasts for AutoNation stock:
AN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-2Morgan StanleyRaises Target$35.00$39.0011.4%
2019-5-6Morgan StanleyRaises Target$27.00$36.0033.3%
2019-4-30SunTrust BanksRaises Targetn/a$43.00-
2019-2-26Bank of AmericaReiterates$59.00$55.00-6.8%
2019-2-19JPMorgan Chase & Co.Initiatesn/a$40.00-
(in average)$40.30$42.606.0%
Moving in a range from $55.00 and $36.00, the price prediction for AutoNation stock is $42.60. In average, analysts' outlook on AN price forecast is positive, increasing the prediction by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

AutoNation failed analysts on February when it reported an Earnings per Share (EPS) of $1.10 when the analysts' forecast was $1.14.
AN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q32017-11-020.84119.0%
2017-Q42018-02-010.921.0210.9%
2018-Q12018-05-0111.011.0%
2018-Q22018-08-011.131.140.9%
2018-Q32018-10-301.251.24-0.8%
2018-Q42019-02-221.141.1-3.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a tight movement of -0.57% to $21,412.80 million dollars. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) remained steady a -0.17% to 1.85%.

AN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,520 M-$376 M2.1%-
2014$19,109 M9.07%$419 M2.2%11.42%
2015$20,862 M9.17%$443 M2.1%5.71%
2016$21,609 M3.58%$431 M2.0%-2.73%
2017$21,535 M-0.34%$435 M2.0%0.95%
2018$21,413 M-0.57%$396 M1.8%-8.88%

Quarterly financial results

AutoNation posted $5,411.70 M in sales for 2018-Q4, a 1.17% up compared to previous quarter. Reported quarter income marked $92.70 M with a profit margin of 1.71%. Profit margin stayed steady a -0.38% compared to previous quarter when profit margin was 2.09%. When comparing sales to same quarter last year, AutoNation sales marked a tragic correction and depreciated a -4.78%.
AN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,280 M-$88 M1.7%-
2017-Q3$5,432 M2.89%$98 M1.8%11.17%
2017-Q4$5,684 M4.62%$151 M2.7%55.18%
2018-Q1$5,260 M-7.45%$94 M1.8%-38.07%
2018-Q2$5,392 M2.51%$98 M1.8%4.16%
2018-Q3$5,349 M-0.79%$112 M2.1%14.75%
2018-Q4$5,412 M1.17%$93 M1.7%-17.23%
2019-Q1$4,982 M-7.94%$92 M1.8%-0.76%

AutoNation ownership

When you are planning to buy a company, it's always worth to have a look its ownership structure.

AutoNation shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 13.56% of all shares.

Bearish positions for AN stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

ANABGCPRTGPIKMX
Market cap$4.5 B$1.9 B$18.9 B$1.6 B$14.0 B
Total shares89.1 M19.4 M229.1 M18.6 M165.6 M
Float shares60.0 M17.2 M200.5 M15.7 M154.8 M
  - Institutional holdings (%)87.1%109.4%86.9%106.4%106.1%
  - Insider holdings (%)13.6%2.2%12.9%6.8%0.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

AutoNation summary

Friday, September 20th, 2019
Open$50.90
Close$50.51
Day range$50.13 - $51.04
Previous close$50.71
Session gain-0.39%
Average true range$1.32
50d mov avg$47.58
100d mov avg$44.25
200d mov avg$40.24
Daily patternlb02a
Weekly pattern lt06a

AutoNation performance

To better understand AutoNation performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare AutoNation to Asbury Automotive, Copart, Group 1 Automotive, CarMax, Lithia Motors, Penske Automotive, Rush Enterprises and Sonic Automotive:
Stock3m6m12m
ANAutoNation18.79%50.46%13.79%
ABGAsbury Automotive22.92%50.23%39.09%
CPRTCopart11.69%39.38%57.06%
GPIGroup 1 Automotiv...10.75%43.06%22.83%
KMXCarMax-1.18%37.32%8.26%
LADLithia Motors9.18%51.86%50.30%
PAGPenske Automotive-1.93%9.46%-5.82%
RUSHARush Enterprises11.64%-2.79%-5.30%
SAHSonic Automotive27.54%109.67%40.50%

AutoNation competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for AutoNation. We chose 8 companies as AutoNation competitors as they are in the same industry or have similar market objectives.