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David W. Hult, President and CEO of Asbury (NYSE:ABG) Automotive Group Inc. (NYSE:ABG), sold a significant portion of his stock holdings in the company, according to recent filings. The transactions, which took place between August 14 and August 15, involved the sale of 7,290 shares, totaling approximately $1.9 million, with individual share prices ranging from $227.14 to $234.20.
The sales were part of Hult's annual financial planning strategy for asset diversification and estate planning purposes, a practice he has previously followed and may continue to do on an annual basis. The shares sold on August 14 included 400 shares at $227.14 each and an additional 100 shares at $227.36 each. The following day, Hult sold 2,700 shares at an average price of $231.28, with the price range for these shares between $230.67 and $231.59.
Additional transactions on August 15 included the sale of 1,690 shares at an average price of $232.23 and 2,400 shares at an average price of $233.18, with respective price ranges of $231.68 to $232.66 and $232.75 to $233.62. The final sale of the two-day period was 900 shares at an average price of $234.20, with a price range of $234.09 to $234.37.
Following these transactions, Hult's direct ownership in Asbury Automotive stands at 49,144 shares. The sales were conducted as part of a structured financial planning strategy and were not indicative of any underlying concerns about the company's performance or prospects.
Investors and the market often pay close attention to insider sales, as they can provide insights into executives' perspectives on the company's valuation and future. However, it is also common for executives to sell shares for personal financial management reasons that are not directly related to their outlook on the company's performance.
Asbury Automotive Group Inc ., headquartered in Duluth, Georgia, operates as a leading automotive retailer in the United States. The company continues to grow its brand and dealership footprint, aiming to provide a comprehensive range of automotive products and services, including vehicle sales, financing, and maintenance.
In other recent news, Asbury Automotive reported record total revenue of $4.2 billion and record parts and service revenue of $581 million for the second quarter of 2024, despite facing a CDK outage that temporarily disrupted operations across all Asbury stores, excluding Koons locations. The company's adjusted net income reached $236 million, with an adjusted earnings per share (EPS) of $6.40. Asbury Automotive also ended the quarter with a solid liquidity position of $806 million and a pro forma adjusted net leverage of 2.7x.
The CDK outage is estimated to have impacted diluted EPS by $0.95 to $1.15 for the quarter. However, performance is expected to normalize following recovery from the outage. Asbury Automotive is set to offer TCA in Florida and Koons stores later this year as part of recent developments.
The company is committed to growth through share buybacks, mergers and acquisitions, and organic investments. Full-year capital expenditures are anticipated to be between $200 million and $250 million. Asbury Automotive is also exploring the implementation of Tekion, a cloud-based DMS technology, to enhance cybersecurity and operational efficiency.
InvestingPro Insights
As the President and CEO of Asbury Automotive Group Inc. (NYSE:ABG), David W. Hult's recent stock sales may draw investor attention to the company's financial health and future prospects. In light of these events, several key metrics from InvestingPro provide a snapshot of the company's current market standing and performance.
Asbury Automotive's market capitalization stands at $4.64 billion, reflecting the market's valuation of the company. The company's price-to-earnings (P/E) ratio is currently at 11.9, which offers insight into how the stock is priced relative to its earnings. Moreover, the adjusted P/E ratio for the last twelve months as of Q2 2024 shows an even more attractive figure of 7.53, suggesting that the stock may be undervalued based on its recent earnings.
InvestingPro Data also reveals a revenue growth of 6.9% for the last twelve months as of Q2 2024, indicating the company's ability to increase its sales over time. This is further supported by a quarterly revenue growth of 13.46% for Q2 2024, showcasing a robust short-term performance.
Among the InvestingPro Tips, it's important to note that analysts predict Asbury Automotive will be profitable this year, aligning with the company's strong return over the last five years. However, concerns arise as five analysts have revised their earnings downwards for the upcoming period. This could be a factor for investors to consider when evaluating the company's future earnings potential.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which can be accessed through the InvestingPro platform for Asbury Automotive at https://www.investing.com/pro/ABG. These tips provide valuable insights into the company's financials and operations, including details on its debt burden and gross profit margins.
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