In the wake of an upgrade from Morgan Stanley, shares of Duluth, Georgia-based Asbury (NYSE:ABG) Automotive Group Inc. have seen a 4% increase. The rating upgrade comes on the heels of significant improvements to Asbury's online car-buying platform, a move that has evidently resonated with investors.
The company recently reported a substantial year-over-year increase with a record Q4 profit of $141 million ($6.44/share). This news comes in the wake of Asbury's acquisition of Larry H. Miller Dealerships and Total Care Auto (TCA), which has been noted as a significant development for the company.
Operating through two main segments, Dealerships and TCA, Asbury provides a wide array of automotive services. These range from vehicle sales to repairs and maintenance, parts replacement, collision repair, as well as finance and insurance products. The recent enhancements to its online platform are expected to further streamline these services, providing an improved customer experience while driving growth for the company.
InvestingPro Insights
InvestingPro's real-time data and tips offer valuable insights into Asbury Automotive Group's performance and potential. The management has been noted for their aggressive share buyback strategy, indicating a strong belief in the company's future prospects. Additionally, the company has consistently increased its earnings per share and yields a high return on invested capital, demonstrating its financial strength and efficiency.
On the other hand, the company's revenue growth has been slowing down recently, and net income is expected to drop this year. Despite these challenges, it's worth noting that Asbury operates with a high return on assets and its liquid assets exceed short-term obligations, indicating strong financial health.
InvestingPro offers a total of 18 tips related to Asbury Automotive Group, which are available to subscribers of their premium service. These tips provide a comprehensive overview of the company's financial performance, helping investors make informed decisions.
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