A substantial insider sell was reported on December 2, by Daniel Clara, SVP at Asbury Automotive Gr ABG, based on the recent SEC filing.

What Happened: Clara’s recent move involves selling 4,600 shares of Asbury Automotive Gr. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $1,199,684.

As of Tuesday morning, Asbury Automotive Gr shares are up by 0.75%, currently priced at $267.0.

All You Need to Know About Asbury Automotive Gr

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: A Financial Overview

Revenue Growth: Over the 3 months period, Asbury Automotive Gr showcased positive performance, achieving a revenue growth rate of 15.56% as of 30 September, 2024. This reflects a substantial increase in the company’s 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.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 16.95%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Asbury Automotive Gr’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 6.4.

Debt Management: With a below-average debt-to-equity ratio of 1.52, Asbury Automotive Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.87 is lower than the industry average, implying a discounted valuation for Asbury Automotive Gr’s stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.33, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.74 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes To Focus On

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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