AutoNation's Stock Declines Following Acquisition Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 Dec 25
Source: SeekingAlpha
AutoNation Inc's stock fell by 5.03% and hit a 5-day low amid broader market weakness, with the Nasdaq-100 down 1.81% and the S&P 500 down 1.08%.
The decline comes despite the company's recent acquisition of Jerry's Toyota in Baltimore, which is expected to generate $123 million in annual revenue. This acquisition marks a significant expansion for AutoNation, establishing its 20th Toyota store nationwide and enhancing its market presence in Maryland. However, the overall market sentiment has been negative, contributing to the stock's downward movement.
This situation highlights the challenges AutoNation faces in a tough market environment, even as it makes strategic moves to strengthen its position in the automotive retail sector.
Analyst Views on AN
Wall Street analysts forecast AN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AN is 250.13 USD with a low forecast of 220.00 USD and a high forecast of 300.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 207.070
Low
220.00
Averages
250.13
High
300.00
Current: 207.070
Low
220.00
Averages
250.13
High
300.00
About AN
AutoNation, Inc., through its subsidiaries, is an automotive retailer in the United States. Its segments include Domestic, Import, Premium Luxury, and AutoNation Finance. The Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. The Import segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Toyota, Honda, Hyundai, Subaru, and Nissan. The Premium Luxury segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. The franchises in each of its Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive services, and automotive finance and insurance products. The AutoNation Finance segment is comprised of its captive auto finance company, which provides indirect financing to qualified retail customers on vehicles it sells.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
