Davis Capital Management Buys 84 Shares of AutoNation, Inc. (NYSE:AN)

Davis Capital Management grew its stake in AutoNation, Inc. (NYSE:AN) by 0.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 9,532 shares of the company’s stock after acquiring an additional 84 shares during the period. AutoNation accounts for about 1.3% of Davis Capital Management’s investment portfolio, making the stock its 23rd biggest position. Davis Capital Management’s holdings in AutoNation were worth $1,543,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Boston Partners bought a new stake in shares of AutoNation during the first quarter worth approximately $170,270,000. Wedge Capital Management L L P NC raised its stake in shares of AutoNation by 47.0% during the fourth quarter. Wedge Capital Management L L P NC now owns 342,862 shares of the company’s stock worth $51,491,000 after buying an additional 109,571 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in AutoNation by 0.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 300,991 shares of the company’s stock valued at $45,203,000 after purchasing an additional 1,166 shares in the last quarter. Norges Bank bought a new stake in AutoNation in the fourth quarter valued at approximately $42,748,000. Finally, Ferguson Wellman Capital Management Inc. increased its stake in AutoNation by 1.8% in the first quarter. Ferguson Wellman Capital Management Inc. now owns 267,650 shares of the company’s stock valued at $44,317,000 after purchasing an additional 4,720 shares in the last quarter. 94.62% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of AutoNation from $142.00 to $155.00 and gave the company a “neutral” rating in a research note on Thursday, May 2nd. Guggenheim upped their target price on shares of AutoNation from $169.00 to $187.00 and gave the company a “buy” rating in a research note on Friday, May 17th. Evercore ISI upped their target price on shares of AutoNation from $200.00 to $220.00 and gave the company an “outperform” rating in a research note on Monday, June 10th. Bank of America upped their target price on shares of AutoNation from $210.00 to $220.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Finally, Wells Fargo & Company upped their target price on shares of AutoNation from $164.00 to $187.00 and gave the company an “equal weight” rating in a research note on Thursday. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $187.00.

Insider Buying and Selling

In other AutoNation news, major shareholder Edward S. Lampert sold 23,703 shares of the stock in a transaction on Friday, July 12th. The shares were sold at an average price of $172.29, for a total value of $4,083,789.87. Following the completion of the sale, the insider now owns 3,980,467 shares in the company, valued at $685,794,659.43. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other AutoNation news, major shareholder Edward S. Lampert sold 100,000 shares of the stock in a transaction on Monday, July 15th. The shares were sold at an average price of $176.21, for a total value of $17,621,000.00. Following the completion of the sale, the insider now owns 3,880,467 shares in the company, valued at $683,777,090.07. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Edward S. Lampert sold 23,703 shares of the stock in a transaction on Friday, July 12th. The shares were sold at an average price of $172.29, for a total transaction of $4,083,789.87. Following the completion of the sale, the insider now owns 3,980,467 shares of the company’s stock, valued at approximately $685,794,659.43. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 177,265 shares of company stock worth $32,066,359. 0.74% of the stock is owned by insiders.

AutoNation Stock Down 7.2 %

AN traded down $13.21 during trading hours on Friday, hitting $170.74. 672,440 shares of the company’s stock were exchanged, compared to its average volume of 439,837. AutoNation, Inc. has a 1-year low of $123.81 and a 1-year high of $197.18. The stock’s 50-day moving average is $168.00 and its two-hundred day moving average is $159.26. The stock has a market cap of $6.88 billion, a price-to-earnings ratio of 8.10, a PEG ratio of 3.61 and a beta of 1.21. The company has a quick ratio of 0.23, a current ratio of 0.79 and a debt-to-equity ratio of 1.47.

AutoNation (NYSE:AN) last announced its earnings results on Wednesday, July 31st. The company reported $3.99 EPS for the quarter, missing the consensus estimate of $4.31 by ($0.32). AutoNation had a return on equity of 36.28% and a net margin of 2.93%. The business had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.72 billion. During the same quarter in the previous year, the company posted $6.29 EPS. The business’s revenue for the quarter was down 5.9% compared to the same quarter last year. Sell-side analysts predict that AutoNation, Inc. will post 17.88 earnings per share for the current fiscal year.

AutoNation declared that its Board of Directors has authorized a stock buyback plan on Friday, April 26th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 14.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

About AutoNation

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. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.