Auto Trader Group (LON:AUTO) Posts Earnings Results

Auto Trader Group (LON:AUTO) posted its quarterly earnings results on Thursday. The company reported GBX 34.17 earnings per share for the quarter, Digital Look Earnings reports. Auto Trader Group had a return on equity of 60.53% and a net margin of 47.08%.The company had revenue of £624.30 million during the quarter.

Here are the key takeaways from Auto Trader Group’s conference call:

• Auto Trader said it grew full-year revenue, operating profit, and EPS despite a tougher trading backdrop, with group revenue up 4% to GBP 585.3 million and operating profit up 4% to GBP 408 million.
• The company acknowledged a weaker second half, driven by pressure on retailer profitability, faster stock-turn, and feedback around the accelerated rollout of Deal Builder, which contributed to higher cancellations and a lower FY 2027 starting run rate.
• Management said retailer numbers, stock, and upsells have been improving since year-end and that the business has “passed the low point,” with April and May trends showing recovery in forecourts and paid stock.
• The board announced a more aggressive capital return policy, expecting to return over GBP 1 billion to shareholders across FY 2026 and FY 2027 combined, while also planning about GBP 500 million of buybacks in FY 2027.
• FY 2027 guidance calls for group operating profit of GBP 395 million to GBP 415 million, with margins at least maintained and high single-digit EPS growth supported by buybacks, while Autorama is expected to move to a small profit and be reported as part of one operating segment.

Auto Trader Group Stock Up 0.0%

Shares of AUTO stock opened at GBX 452.81 on Friday. The stock’s 50 day simple moving average is GBX 487.54 and its 200 day simple moving average is GBX 546.89. The company has a debt-to-equity ratio of 50.60, a quick ratio of 1.50 and a current ratio of 1.73. Auto Trader Group has a twelve month low of GBX 443.40 and a twelve month high of GBX 920. The company has a market capitalization of £3.69 billion, a price-to-earnings ratio of 13.62, a PEG ratio of 3.99 and a beta of 0.69.

Insider Buying and Selling

In related news, insider Matt Davies acquired 5,532 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average cost of GBX 452 per share, with a total value of £25,004.64. Also, insider Amanda James acquired 5,477 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was bought at an average cost of GBX 454 per share, for a total transaction of £24,865.58. 3.31% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on AUTO shares. Deutsche Bank Aktiengesellschaft cut their price target on Auto Trader Group from GBX 850 to GBX 816 and set a “buy” rating for the company in a research note on Friday, March 27th. JPMorgan Chase & Co. cut their price objective on Auto Trader Group from GBX 515 to GBX 445 and set an “underweight” rating on the stock in a research note on Friday. Citigroup cut their price objective on Auto Trader Group from GBX 880 to GBX 526 and set a “neutral” rating on the stock in a research note on Thursday, April 9th. Finally, UBS Group reissued a “sell” rating and issued a GBX 470 price objective on shares of Auto Trader Group in a research note on Monday, May 18th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of GBX 584.40.

Auto Trader Group Company Profile

Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry. Listed on the London Stock Exchange since March 2015, the company is a member of the FTSE 100 Index.

Autotrader’s purpose is Driving Change Together. Responsibly. The company uses advanced data science, artificial intelligence and scalable technology to improve how vehicles are bought and sold, while building stronger partnerships with its customers and the wider automotive ecosystem.