AutoNation stock: buy or sell?

AN stock price: $39.73 -0.80% At close on May 20th, 2019

Updated on:
May 20th, 2019

2

Shares of AutoNation ended today at $39.73 and depreciated an ugly -0.80%.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Only 1 of our buy setups matches with AutoNation stock now:

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MAYes
100d MA crossing up 200d MANo

Is AutoNation stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 5 ratings published for AN stock in the last month.

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

AutoNation shares depreciated -0.80% to $39.73 today.

Shares of AutoNation depreciated an ugly -0.80% and closed at $39.73. Since price and SMA200d lines crossed up on Thursday, AN climbed $0.70 (1.79%). Since SMA50d and SMA100d crossed up on May 9th, AN price slid a -1.93%.

AN stock chart (daily)

Weekly outlook

AutoNation shares decreased -0.80% this week, ending at $39.73. Late April AN climbed an amazing 10.59% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $43.36 resistance. Since price and SMA40w lines crossed up late April, AN climbed $1.90 (5.02%). Since SMA10w and SMA20w crossed up last week, AN price slid a -0.18%.

AN stock chart (weekly)

AutoNation stock price history

AutoNation stock went public on May 11th, 1990 with a price of $2.101. Since then, AN stock surged a 1,791.90%, with an average of 61.80% per year. If you had invested $1,000 in AutoNation stock in 1990, it would worth $17,919.00 today.

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

AutoNation stock historical price chart

AN stock reached 52-week highs on June at $51.99, and all-time highs 2015-04-22 with a price of 67.5.

AutoNation stock price target is $43.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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. For the last month we found 4 price forecasts for AutoNation stock:
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 forecast 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 turnover report draw a neutral movement of -0.57% to $21,412.80 million dollars. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) stayed 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 reported $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 remained stable 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 rough drop down 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 invest in a company, it's always worth to overview 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 context understanding, the next table shows ownership data compared to other related stocks:

ANABGCPRTGPIKMX
Market cap$3.5 B$1.5 B$14.9 B$1.4 B$12.8 B
Total shares89.2 M19.5 M228.2 M17.8 M166.2 M
Float shares58.9 M17.3 M199.4 M15.5 M153.8 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

Monday, May 20th, 2019
Open$39.80
Close$39.73
Day range$39.62 - $40.17
Previous close$40.05
Session gain-0.80%
Average true range$0.88
50d mov avg$37.41
100d mov avg$37.10
200d mov avg$39.03
Daily patternlt03a
Weekly pattern lb02a

AutoNation performance

To better understand AutoNation performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Asbury Automotive, Copart, Group 1 Automotive, CarMax, Lithia Motors, Penske Automotive, Rush Enterprises and Sonic Automotive as the bechmarking frame for AutoNation stock.
Stock3m6m12m
ANAutoNation6.72%6.66%-13.91%
ABGAsbury Automotive9.28%13.82%12.73%
CPRTCopart12.13%34.13%20.48%
GPIGroup 1 Automotiv...24.53%39.32%8.36%
KMXCarMax26.96%23.49%14.24%
LADLithia Motors31.56%41.55%20.18%
PAGPenske Automotive1.34%1.22%-5.93%
RUSHARush Enterprises-13.95%-1.11%-15.33%
SAHSonic Automotive19.16%11.72%-12.00%

AutoNation competitors

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