AutoNation Stock Buy Hold or Sell Recommendation

AN
 Stock
  

USD 121.05  0.12  0.1%   

Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding AutoNation is 'Hold'. Macroaxis provides AutoNation buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AN positions. The advice algorithm takes into account all of AutoNation's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from AutoNation's buy-and-hold perspective. Please continue to AutoNation Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as AutoNation and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards AutoNation.

Execute AutoNation Buy or Sell Advice

The AutoNation recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on AutoNation. Macroaxis does not own or have any residual interests in AutoNation or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute AutoNation's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AutoNationBuy AutoNation
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

Details
For the selected time horizon AutoNation has a Risk Adjusted Performance of 7.0E-4, Jensen Alpha of (0.13), Total Risk Alpha of (0.19) and Treynor Ratio of (0.015016)
Macroaxis provides advice on AutoNation to complement and cross-verify current analyst consensus on AutoNation. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure AutoNation is not overpriced, please confirm all AutoNation fundamentals, including its price to book, cash and equivalents, cash flow from operations, as well as the relationship between the gross profit and debt to equity . Given that AutoNation has a price to earning of 4.96 X, we suggest you to validate AutoNation market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

AutoNation Trading Alerts and Improvement Suggestions

Over 98.0% of the company shares are held by institutions such as insurance companies
Latest headline from news.google.com: Insider Alert An Insider Just Sold AutoNation Inc Shares - GuruFocus.com

AutoNation Returns Distribution Density

The distribution of AutoNation's historical returns is an attempt to chart the uncertainty of AutoNation's future price movements. The chart of the probability distribution of AutoNation stock daily returns describes the distribution of returns around its average expected value. We use AutoNation price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of AutoNation returns is essential to provide solid investment advice for AutoNation.
Mean Return-0.0071Value At Risk-4.88
Potential Upside4.14Standard Deviation2.71
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of AutoNation historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

AutoNation Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as AutoNation is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AutoNation backward and forwards among themselves. AutoNation's institutional investor refers to the entity that pools money to purchase AutoNation's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares4.4 K266 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.1 K520 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.1 K570 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares6.1 K604 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares6.1 K708 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares5.4 K652 K
Zurcher Kantonalbank Zurich CantonalbankCommon SharesK470 K
Note, although AutoNation's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

AutoNation Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(292.4 M)(400.8 M)(269.3 M)(156 M)(215.7 M)(232.73 M)
Depreciation Amortization and Accretion158.6 M166.2 M180.5 M198.9 M193.3 M182.87 M
Net Cash Flow or Change in Cash and Cash Equivalents5.7 M(21.7 M)(6.9 M)527.2 M(509.1 M)(522.5 M)
Net Cash Flow Business Acquisitions and Disposals27.8 M106 M110.9 M8.6 M(384 M)(394.11 M)
Issuance Purchase of Equity Shares(395.2 M)(82.2 M)(32 M)(314.5 M)(2.26 B)(2.32 B)
Issuance Repayment of Debt Securities88.9 M(150 M)(625.3 M)(284.1 M)605.2 M652.98 M
Net Cash Flow from Financing(307.4 M)(237.4 M)(660.3 M)(606.7 M)(1.68 B)(1.72 B)
Net Cash Flow from Investing(228.3 M)(295.3 M)(115.8 M)(73.7 M)(460.3 M)(496.64 M)
Net Cash Flow from Operations540.1 M511 M769.2 M1.21 B1.63 B1.76 B
Share Based Compensation20.6 M25.5 M31.1 M30.2 M35 M32.95 M

AutoNation Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to AutoNation or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that AutoNation's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a AutoNation stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.13
β
Beta against NYSE Composite1.14
σ
Overall volatility
2.67
Ir
Information ratio -0.04

AutoNation Volatility Alert

AutoNation exhibits very low volatility with skewness of -0.62 and kurtosis of 3.03. However, we advise investors to further study AutoNation technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AutoNation's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AutoNation's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

AutoNation Implied Volatility

AutoNation's implied volatility exposes the market's sentiment of AutoNation stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if AutoNation's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that AutoNation stock will not fluctuate a lot when AutoNation's options are near their expiration.

AutoNation Fundamentals Vs Peers

Comparing AutoNation's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze AutoNation's direct or indirect competition across all of the common fundamentals between AutoNation and the related equities. This way, we can detect undervalued stocks with similar characteristics as AutoNation or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AutoNation's fundamental indicators could also be used in its relative valuation, which is a method of valuing AutoNation by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AutoNation to competition
FundamentalsAutoNationPeer Average
Return On Equity0.64 %(0.31) %
Return On Asset0.15 %(0.14) %
Profit Margin0.06 %(1.27) %
Operating Margin0.08 %(5.51) %
Current Valuation11.09 B16.62 B
Shares Outstanding49.57 M571.82 M
Shares Owned by Insiders19.04 %10.09 %
Shares Owned by Institutions97.72 %39.21 %
Number of Shares Shorted6.55 M4.71 M
Price to Earning4.96 X28.72 X
Price to Book2.70 X9.51 X
Price to Sales0.22 X11.42 X
Revenue25.84 B9.43 B
Gross Profit4.95 B27.38 B
EBITDA2.12 B3.9 B
Net Income1.37 B570.98 M
Cash and Equivalents60.4 M2.7 B
Cash per Share8.93 X5.01 X
Total Debt2.85 B5.32 B
Debt to Equity2.42 %48.70 %
Current Ratio1.05 X2.16 X
Book Value Per Share43.15 X1.93 K
Cash Flow from Operations1.63 B971.22 M
Short Ratio6.07 X4.00 X
Earnings Per Share24.90 X3.12 X
Price to Earnings To Growth1.11 X4.89 X
Target Price148.44
Number of Employees22.2 K18.84 K
Beta1.12-0.15
Market Capitalization6 B19.03 B
Total Asset8.94 B29.47 B
Retained Earnings3.67 B9.33 B
Working Capital648.4 M1.48 B
   Sale by Lampert Edward S of 600 shares of Autonation [view details]

AutoNation Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as AutoNation . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About AutoNation Buy or Sell Advice

When is the right time to buy or sell AutoNation? Buying financial instruments such as AutoNation Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables680.7 M635.2 M581.6 M567.21 M
Inventories3.31 B2.6 B1.85 B2.16 B

Use Investing Ideas to Build Portfolios

In addition to having AutoNation in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Books Thematic Idea Now

Books
Books Theme
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Books Theme or any other thematic opportunities.
View All  Next Launch
Please continue to AutoNation Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Complementary Tools for analysis

When running AutoNation price analysis, check to measure AutoNation's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AutoNation is operating at the current time. Most of AutoNation's value examination focuses on studying past and present price action to predict the probability of AutoNation's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move AutoNation's price. Additionally, you may evaluate how the addition of AutoNation to your portfolios can decrease your overall portfolio volatility.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Is AutoNation's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoNation. If investors know AutoNation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoNation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.23
Market Capitalization
B
Quarterly Revenue Growth YOY
0.045
Return On Assets
0.15
Return On Equity
0.64
The market value of AutoNation is measured differently than its book value, which is the value of AutoNation that is recorded on the company's balance sheet. Investors also form their own opinion of AutoNation's value that differs from its market value or its book value, called intrinsic value, which is AutoNation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoNation's market value can be influenced by many factors that don't directly affect AutoNation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoNation's value and its price as these two are different measures arrived at by different means. Investors typically determine AutoNation value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoNation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.