Insider Transaction: David Hult Sells $1.90M Worth Of Asbury Automotive Gr Shares

David Hult, President & CEO at Asbury Automotive Gr ABG, reported an insider sell on August 15, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Hult executed a sale of 8,190 shares of Asbury Automotive Gr with a total value of $1,900,928.

Asbury Automotive Gr's shares are actively trading at $231.99, experiencing a down of 0.0% during Friday's morning session.

Discovering Asbury Automotive Gr: A Closer Look

Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates 155 new-vehicle stores and 37 collision centers. Over 70% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products and its own F&I products via Total Care Auto. Asbury operates in 15 states (mostly Texas, the West, the Mid-Atlantic, and the Southeast). Asbury store brands include McDavid and Park Place in Texas, Koons in the Washington, D.C. area, and the Larry H. Miller brand in the Western US. Asbury generated $14.8 billion of revenue in 2023 and is based in the Atlanta area. The firm targets at least $30 billion of revenue sometime between 2025 and 2030.

Asbury Automotive Gr: Delving into Financials

Positive Revenue Trend: Examining Asbury Automotive Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.46% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.21%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Asbury Automotive Gr's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.4.

Debt Management: With a below-average debt-to-equity ratio of 1.58, Asbury Automotive Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 11.79 is lower than the industry average, implying a discounted valuation for Asbury Automotive Gr's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.3 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Asbury Automotive Gr's EV/EBITDA ratio at 11.86 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Asbury Automotive Gr's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.