Asbury Automotive Group (NYSE:ABG) Shares Climb 9.1% – Should You Buy?

Asbury Automotive Group, Inc. (NYSE:ABG)’s stock price shot up 9.1% during trading on Tuesday. The company traded as high as $191.37 and last traded at $188.7280. Approximately 120,761 shares changed hands during trading, a decline of 52% from the average session volume of 251,249 shares. The stock had previously closed at $172.96.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on ABG shares. Morgan Stanley reduced their target price on shares of Asbury Automotive Group from $230.00 to $184.00 and set an “equal weight” rating on the stock in a research report on Monday, October 5th. UBS Group lowered their price target on shares of Asbury Automotive Group from $250.00 to $193.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Barclays reaffirmed a “reduce” rating on shares of Asbury Automotive Group in a report on Tuesday, October 6th. JPMorgan Chase & Co. decreased their price objective on Asbury Automotive Group from $190.00 to $185.00 and set an “underweight” rating on the stock in a research report on Tuesday, October 6th. Finally, Zacks Research lowered Asbury Automotive Group from a “hold” rating to a “strong sell” rating in a research report on Friday, October 16th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Asbury Automotive Group has a consensus rating of “Hold” and an average price target of $214.00.

Asbury Automotive Group Stock Performance

The company has a current ratio of 0.91, a quick ratio of 0.29 and a debt-to-equity ratio of 0.77. The company has a market cap of $3.41 billion, a price-to-earnings ratio of 7.10, a P/E/G ratio of 0.97 and a beta of 0.78. The stock has a 50 day moving average price of $190.06 and a two-hundred day moving average price of $205.47.

Asbury Automotive Group (NYSE:ABG) last released its quarterly earnings data on Tuesday, October 27th. The company reported $6.16 EPS for the quarter, missing analysts’ consensus estimates of $6.42 by ($0.26). Asbury Automotive Group had a net margin of 2.83% and a return on equity of 12.72%. During the same period in the prior year, the company posted $7.17 earnings per share. The firm’s quarterly revenue was down 8.1% on a year-over-year basis. Analysts predict that Asbury Automotive Group, Inc. will post 25.64 EPS for the current year.

Insider Activity at Asbury Automotive Group

In related news, SVP Jed Milstein sold 948 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $250.28, for a total value of $237,265.44. Following the sale, the senior vice president directly owned 11,259 shares in the company, valued at $2,817,902.52. This trade represents a 7.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.75% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Cim Investment Management Inc. boosted its position in Asbury Automotive Group by 7.3% during the second quarter. Cim Investment Management Inc. now owns 1,167 shares of the company’s stock valued at $235,000 after buying an additional 79 shares during the period. Abel Hall LLC grew its stake in shares of Asbury Automotive Group by 9.0% during the first quarter. Abel Hall LLC now owns 1,222 shares of the company’s stock valued at $239,000 after buying an additional 101 shares during the last quarter. GAMMA Investing LLC increased its holdings in shares of Asbury Automotive Group by 20.2% in the third quarter. GAMMA Investing LLC now owns 642 shares of the company’s stock worth $111,000 after buying an additional 108 shares during the period. Allworth Financial LP increased its holdings in shares of Asbury Automotive Group by 263.3% in the second quarter. Allworth Financial LP now owns 178 shares of the company’s stock worth $36,000 after buying an additional 129 shares during the period. Finally, Versant Capital Management Inc increased its holdings in shares of Asbury Automotive Group by 42.4% in the third quarter. Versant Capital Management Inc now owns 534 shares of the company’s stock worth $92,000 after buying an additional 159 shares during the period.

Asbury Automotive Group Company Profile

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that operates franchised and independent dealerships. Its dealerships sell new and used vehicles from a range of domestic, import and luxury automobile brands, and provide related services throughout the vehicle ownership cycle.

The company’s operations include automotive repair and maintenance, parts and accessories, collision repair, vehicle financing and insurance products, and other dealership services. Asbury also supports vehicle sales and service through digital retailing and online customer tools.

Founded in 1995, Asbury has expanded through acquisitions and serves customers across multiple markets in the United States.