AutoNation stock: buy or sell?

AN stock price: $41.67 0.65% At close on July 16th, 2019

Updated on:
July 16th, 2019

0

AutoNation shares inched 0.65% to $41.67 today.

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. Having 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.

None of our preferred buy setups matches with AutoNation stock situation right now, hence 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 doesn't mean AN will fall 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 5 ratings published for AN stock in the last 30 days.

The general sentiment of these ratings is bearish for AN stock, with 2 negative ratings.
Is AN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

Shares of AutoNation inched a slightly good 0.65% and closed at $41.67.

AutoNation shares inched 0.65% to $41.67 today. Since SMA100d and SMA200d crossed up on July/2, AN price slid a -1.58%. Since May when AN stock price broke up the SMA200d line, it gained $2.64 (6.76%).

AN stock chart (daily)

Weekly outlook

Shares of AutoNation depreciated an unpleasant -0.64% this week.

Since SMA20d and SMA40w crossed up by mid June, AN price climbed $0.42 per share (1.02%). Since late April when AN stock price broke up the SMA40w line, it gained $3.84 (10.15%).

AN stock chart (weekly)

AutoNation stock price history

AutoNation stock went public on May 11th, 1990 with a price of $2.801. Since then, AN stock surged a 1,388.20%, with a yearly average of 47.90%. If you had invested $1,000 in AutoNation stock in 1990, it would worth $13,882.00 today.

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

AutoNation stock historical price chart

AN stock reached 52-week highs at $50.02, and all-time highs 2015-04-22 with a price of 67.5.

AutoNation stock price target is $43.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 4 price forecasts for AutoNation stock posted in the last month:
AN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$43.00$43.501.0%
Moving in a range from $55.00 and $36.00, the price target for AN stock is $43.50. In average, analysts' outlook on AN price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

AutoNation disappointed analysts on February when it posted an Earnings per Share (EPS) of $1.10 when the market consensus 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 revenues report draw a neutral move of -0.57% to $21,412.80 million dollars. Aligned with this, its earnings margin (compared to sales) remained 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 M in sales for 2018-Q4, a 1.17% up compared to previous quarter. Reported quarter earnings marked $92.70 million 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 sales to same quarter last year, AutoNation sales marked an awful loss and slightly fell 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 stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For AutoNation, 13.56% 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 next table shows ownership data compared to other related stocks:

ANABGCPRTGPIKMX
Market cap$0.0 M$1.6 B$17.7 B$1.5 B$14.4 B
Total shares0.0 M19.4 M228.2 M18.5 M166.2 M
Float shares58.9 M17.3 M200.5 M15.5 M153.3 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

Tuesday, July 16th, 2019
Open$41.26
Close$41.67
Day range$40.91 - $41.81
Previous close$41.40
Session gain0.65%
Average true range$0.87
50d mov avg$40.95
100d mov avg$38.63
200d mov avg$38.22
Daily pattern
Weekly pattern

AutoNation performance

To better understand AutoNation performance you must becnhmark its gains with other related stocks in same sector or industry. We compared AutoNation against Asbury Automotive, Copart, Group 1 Automotive, CarMax, Lithia Motors, Penske Automotive, Rush Enterprises and Sonic Automotive in the following table:
Stock3m6m12m
ANAutoNation10.15%9.89%-14.24%
ABGAsbury Automotive10.67%15.27%20.72%
CPRTCopart19.07%54.75%31.35%
GPIGroup 1 Automotiv...13.56%34.07%22.83%
KMXCarMax12.19%39.52%11.99%
LADLithia Motors21.13%37.87%26.91%
PAGPenske Automotive-1.01%-3.60%-4.86%
RUSHARush Enterprises-20.25%-10.10%-21.32%
SAHSonic Automotive51.67%50.89%32.77%

AutoNation competitors

We selected a few stocks to conform a list of AutoNation competitors to examine if you are interested in investing in AN: