Auto Trader Group (LON:AUTO) Posts Earnings Results

Auto Trader Group (LON:AUTO) posted its earnings results on Thursday. The company reported GBX 34.17 earnings per share for the quarter, Digital Look Earnings reports. The business had revenue of £624.30 million for the quarter. Auto Trader Group had a return on equity of 51.86% and a net margin of 47.69%.

Here are the key takeaways from Auto Trader Group’s conference call:

• Auto Trader said it grew full-year revenue, operating profit, and EPS despite a tougher trading backdrop, with group revenue up 4% to GBP 585.3 million and operating profit up 4% to GBP 408 million.
• The company acknowledged a weaker second half, driven by pressure on retailer profitability, faster stock-turn, and feedback around the accelerated rollout of Deal Builder, which contributed to higher cancellations and a lower FY 2027 starting run rate.
• Management said retailer numbers, stock, and upsells have been improving since year-end and that the business has “passed the low point,” with April and May trends showing recovery in forecourts and paid stock.
• The board announced a more aggressive capital return policy, expecting to return over GBP 1 billion to shareholders across FY 2026 and FY 2027 combined, while also planning about GBP 500 million of buybacks in FY 2027.
• FY 2027 guidance calls for group operating profit of GBP 395 million to GBP 415 million, with margins at least maintained and high single-digit EPS growth supported by buybacks, while Autorama is expected to move to a small profit and be reported as part of one operating segment.

Auto Trader Group Stock Performance

AUTO opened at GBX 446.20 on Friday. The business has a fifty day simple moving average of GBX 488.20 and a 200 day simple moving average of GBX 547.55. The company has a market capitalization of £3.64 billion, a PE ratio of 13.42, a price-to-earnings-growth ratio of 3.99 and a beta of 0.69. Auto Trader Group has a 1 year low of GBX 444 and a 1 year high of GBX 920. The company has a debt-to-equity ratio of 10.48, a current ratio of 1.77 and a quick ratio of 1.50.

Insider Buying and Selling at Auto Trader Group

In other news, insider Amanda James purchased 5,477 shares of Auto Trader Group stock in a transaction that occurred on Thursday, May 21st. The stock was acquired at an average cost of GBX 454 per share, for a total transaction of £24,865.58. Also, insider Matt Davies bought 5,532 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were bought at an average price of GBX 452 per share, with a total value of £25,004.64. Insiders own 3.31% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on AUTO shares. Citigroup decreased their target price on Auto Trader Group from GBX 880 to GBX 526 and set a “neutral” rating on the stock in a report on Thursday, April 9th. UBS Group restated a “sell” rating and issued a GBX 470 price target on shares of Auto Trader Group in a research note on Monday. Deutsche Bank Aktiengesellschaft reduced their price target on Auto Trader Group from GBX 850 to GBX 816 and set a “buy” rating for the company in a research note on Friday, March 27th. Finally, JPMorgan Chase & Co. reduced their price target on Auto Trader Group from GBX 630 to GBX 515 and set an “underweight” rating for the company in a research note on Thursday, March 19th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of GBX 598.40.

Auto Trader Group Company Profile

Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry. Listed on the London Stock Exchange since March 2015, the company is a member of the FTSE 100 Index.

Autotrader’s purpose is Driving Change Together. Responsibly. The company uses advanced data science, artificial intelligence and scalable technology to improve how vehicles are bought and sold, while building stronger partnerships with its customers and the wider automotive ecosystem.