Asbury Automotive Group: Buy Rating Maintained, PT Down to $300 by BofA Securities

Asbury Automotive Group: Buy Rating Maintained, PT Down to $300 by BofA Securities

Asbury Automotive Group, Inc. (NYSE: ABG) has maintained its "Buy" rating from BofA Securities, despite a downward revision in the price target (PT) to $300 from the previous $325 [^NUMBER:1]. The stock has been under the spotlight due to its latest earnings report and insider trading activities.

In its latest quarter, Asbury Automotive reported an earnings per share (EPS) of $7.43, surpassing analyst expectations of $6.82. However, the company's revenue of $4.37 billion fell slightly short of analyst estimates of $4.44 billion [^NUMBER:1]. Despite the revenue miss, the company's strong EPS and a 3.0% year-over-year (YoY) revenue growth have analysts optimistic about its future prospects.

BofA Securities has maintained its "Buy" rating on the stock, citing Asbury Automotive's strong financial performance and market position. However, the downward revision in the price target reflects the analyst's cautious view on the company's growth prospects. The new PT of $300 represents a 20% decrease from the previous target, indicating a more conservative outlook on the stock's potential upside.

In addition to the analyst's rating, institutional investors have been active in Asbury Automotive's shares. Northern Trust Corp, Schonfeld Strategic Advisors LLC, Comerica Bank, Algert Global LLC, and BNP Paribas Financial Markets have all increased their stakes in the company's stock in recent quarters [^NUMBER:1].

Moreover, insider selling has been observed, with Asbury Automotive's Director Maureen Morrison selling 800 shares and SVP Dean Calloway selling 400 shares in August [^NUMBER:1]. These transactions represent a 12.08% and 7.02% decrease in their respective positions, respectively.

Asbury Automotive Group's stock has been trading within a range of $201.68 to $312.56 over the past year, with a current market capitalization of $4.98 billion [^NUMBER:1]. The company's strong financial performance and market position have analysts divided on its future prospects, with a consensus recommendation of "Hold" and an average price target of $254.00 [^NUMBER:2].