Edward Lampert's recent sale was the largest insider sale of AutoNation shares in the past year. Despite high insider ownership, the history of share sales is somewhat concerning.

Despite AutoNation's undervaluation, negative growth poses a risk. Investors should consider their portfolio exposure to AutoNation or diversify. Further research is recommended, considering future negative growth risks.

The fall in used-car revenue and decrease in average new car prices are viewed as negative signs for the auto industry. Rising inflation and potential higher interest rates could further pressure car prices, impacting auto stocks and parts suppliers.

Despite AutoNation's strong performance, its total shareholder return of 10.0% over the last year was below market average. However, longer-term returns look promising at about 31% a year over half a decade.

Substantial insider selling of AutoNation shares, especially by Edward Lampert, may indicate insiders believe the shares are overpriced. The lack of buying and recent selling trend don't inspire confidence in the stock.

Analysts predict AutoNation's decreasing earnings and declining future outlook could add to its low P/E. Unless profitability improves, this may hamper significant share price hike.

Investors warned of risk in AutoNation due to anticipated negative growth. Shareholders urged to reconsider portfolio exposure. Deeper analysis advised before investing.

Core points
1. New vehicle retail sales rose 11% YoY and 15% QoQ in Q2 as supply chain constraints eased.
2. Listed new car dealerships are up more than 50% year-to-date, outperforming the S&P's 17% year-to-date rally. This jump may reflect better-than-expected car pricing, strategic actions (M&A, buybacks), and better macroeconomics.
3. New pricing decreased slightly q/q, and used pricing dropped significantly in J...