AutoNation stock: buy or sell?

AN stock price: $39.79 -0.33% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

1

Shares of AutoNation stayed constant a lame -0.33% and closed at $39.79. On May/13 AN plummed a spooky -10.75%. On May 18th AN climbed a dazzling 8.95%.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with AutoNation stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is AutoNation stock a buy?

Financial institutions and banks publish stock ratings everyday. Unfortunately, we couldn't find any rating for AN stock for the last month.

AutoNation stock analysis

Daily outlook

Shares of AutoNation stayed constant a lame -0.33% and closed at $39.79.

AutoNation shares stayed stable -0.33% to $39.79 on Friday. Since last February when AN stock price broke down the SMA200d line, it slid $-7.65 per share (-16.13%).

AN stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -7.34% in a week by mid May, AutoNation closed this week at $39.79 and rocketed an exceptional 11.46%.

AutoNation stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, AN might consolidate in a flat-base, waiting to break out over or down under . Since late February, when AN stock price broke down the 40-weeks moving avarage line, it slid $-8.86 per share (-18.21%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

AN stock chart (weekly)

AutoNation stock price history

AutoNation stock went public on May 11th, 1990 with a price of $0.001. Since then, AN stock grew a inf%, with a yearly average of inf%. If you had invested right after AN's IPO a $1,000 in AutoNation stock in 1990, it would worth $inf today.

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

AutoNation stock historical price chart

AN stock reached 52-week highs on November at $53.19, and all-time highs 2015-04-22 with a price of 67.5.

AutoNation stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' AN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not found any price forecast for AutoNation stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

AutoNation let down experts 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

In 2018, AutoNation annual sales remained constant a neutral -0.57% to $21,412.80 M dollars from $21,534.60 marked in 2017. Similarly, its income margin (compared to revenues) stayed stable to 1.85%, that is $396.00 million.

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 reported $5,411.70 million in revenues for 2018-Q4, a 1.17% improvement compared to previous quarter. Reported quarter income marked $92.70 M with a profit margin of 1.71%. Profit margin remained constant a -0.38% compared to previous quarter when profit margin was 2.09%. When comparing turnover 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 shares of a company, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For AutoNation, 11.64% of all outstanding shares are owned by its staff.

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

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

AN
Market cap$3.5 B
Total shares87.2 M
Float shares58.3 M
  - Institutional holdings (%)84.5%
  - Insider holdings (%)11.6%
Shares in short selling0.0%

AutoNation summary

Friday, May 22nd, 2020
Open$39.91
Close$39.79
Day range$38.73 - $40.07
Previous close$39.92
Session gain-0.33%
Average true range$2.36
50d mov avg$32.35
100d mov avg$38.55
200d mov avg$44.28
Daily pattern
Weekly pattern lt06a

AutoNation performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For AutoNation, the benchmark is made against .
Stock3m6m12m
ANAutoNation-18.21%-22.89%0.23%

AutoNation competitors

Unfortunately, we could not find any public company that could be defined as AutoNation competitor. This doesn't mean AutoNation does not have any competitor in the market, it's just we could not detected it.