Bill Gates trimmed his investment in AutoNation by about $78 million of stock. He remains the car retailer’s largest shareholder.
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Bill Gates trimmed a position in AutoNation , though he remains the car retailer’s largest shareholder.
AutoNation (ticker: AN) stock has surged more than 70% so far this year, far outperforming the S&P 500 index. Demand has been high for cars, bolstering AutoNation stock. On Sept. 21, the retailer named Mike Manley as its new CEO.
Days later, from Sept. 24 through Sept. 29, Gates sold 622,880 AutoNation shares for $78 million, a per-share average price of $125.30. According to forms he filed with the Securities and Exchange Commission, the transaction was made through his investment vehicle, Cascade Investment, which now owns 11.5 million AutoNation shares.
Cascade didn’t respond to a request for comment.
Earlier this year, as part of his divorce, Gates, a co-founder of Microsoft (MSFT), transferred stock, including AutoNation shares, to his former wife, Melinda French Gates.
Morgan Stanley analysts upgraded AutoNation stock to Buy after Manley’s CEO appointment, and lifted the price target to $116 from $70. “Our new target reflects the potential for [AutoNation] to be a stronger player in the new mobility ecosystem,” the analysts wrote in a report. But the higher price target is lower than where AutoNation stock was trading last week, when it set a record price.
Glenn Chin of Seaport Research Partners maintained a Neutral rating on AutoNation after the CEO announcement. Despite the rating, “we believe that bias is to the upside,” Chin wrote.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
