Edward Lampert, a more-than-10% owner of AutoNation (AN), recently sold shares worth $10.36 million. A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
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AutoNation is an American car retailer that connects buyers and sellers of both new and used cars. On July 31, AutoNation reported Q2 FY24 adjusted earnings of $3.99 per share, missing the consensus of $4.32 per share. Similarly, revenue of $6.48 billion came in lower than the Street’s estimates of $6.72 billion. Year-to-date, AN shares have gained 13.7%.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on August 2, Lampert sold 53,562 AN shares on July 31, at a weighted average price of $193.4499 apiece. It is worth noting that even after the latest Informative Sell transaction, Lampert still owns $653.22 million worth of AutoNation shares.
AutoNation stock currently has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $32.3 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is AutoNation a Good Stock to Buy?
On TipRanks, AN stock has a Moderate Buy consensus rating based on four Buys and two Hold recommendations. The average AutoNation price target of $183.80 implies 7.7% upside potential from current levels.
