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Down a Billion - Lampert Sells in Review, AutoNation Update

October 31, 2013 | About:
Sally Jones

Sally Jones

49 followers
A man of many hats and top investor Guru Edward “Eddie” Lampert also manages his firm ESL Investments. His third quarter portfolio lists 4 stocks at a total value of $2.99 billion, down almost a billion since April 2013. His quarter-over-quarter turnover is 0%.

Also the Sears Holdings Corporation CEO, Lampert spent a good deal of his 2013 trading time methodically reducing his involvement in the Sears spinoff, Orchard Supply Hardware, from over a million shares in the first quarter of 2013 to 158,399 shares as of May 29, 2013.

Spun off from Sears in December 2011 and acquired by Lowe’s in September 2013 for $205 million, Orchard Supply Hardware stores have operated as a neighborhood home improvement, hardware and garden supplier, dating back to the Dust Bowl Era.

Lowe’s Companies Inc. (LOW) is up 52% over 12 months. Sears Holdings Corporation (SHLD) is down 10% over 12 months.

With the Orchard Supply situation behind him, Edward Lampert’s reductions in the second and third quarters have focused on systematically reducing his long-time AutoNation Inc. (AN) holding. Since the beginning of the third quarter, Lampert has reduced his AN position five times. In his latest trade, as of Oct. 30, 2013, Edward Lampert slightly reduced his position by 0.02%, selling shares in the average price range of $48.00 per share. The current share price is $48.12, with a change from average at 0%. See GuruFocus Real Time Picks for more trade details.

Lampert’s five-year AutoNation history shows a phenomenal gain of 292% on 13,097,719 shares bought at an average price of $12.26 per share. He also gained 39% selling 59,453,152 shares at an average price of $34.65 per share.

Check out ten more gurus holding AN, including Paul Tudor Jones who made a new buy of 11,700 shares in the second quarter of 2013. He paid an average price of $44.63 per share and made a gain of 8.2%.

Here’s a third quarter update on AutoNation Inc. with very active insider selling.

AutoNation Inc. (AN)

Predictability: 1 out of 5 Stars

Up 9% over 12 months, AutoNation Inc. has a market cap of $5.86 billion; its shares were traded at around $48.20 with a P/E ratio of 17.70. The company does not pay a dividend.

Incorporated in 1991, AutoNation Inc. is an automotive retailer in the US. The company owns and operates 265 new vehicle franchises from 221 stores located in the United States, as of December 31, 2012. AutoNation Inc. offers a range of automotive products and services, including new vehicles, used vehicles, parts and automotive services, and automotive finance and insurance products. The company also arranges financing for vehicle purchases through third-party finance sources.

The company reported financial results for the third quarter of 2013 with a 14% year-over-year increase in revenue at $4.5 billion. Operating income was reported at $187 million, also up 14% compared to the third quarter of 2012. AutoNation reported net income for the third quarter of 2013 at $93 million, up from $82 million in the same quarter a year ago. Earnings of $0.75 per share were also up 14% over $0.66 per share in the third quarter of 2012.

The company’s total vehicle sales have also increased by 14% over the same quarter of 2012, and the nation’s largest automotive retailer plans to buy a Honda store and a Hyundai store in Chicago, Illinois, set for completion in the last quarter of 2013, bringing in additional annual revenue of $85 million.

AutoNation’s chairman and CEO Mike Jackson, commented in a company press release, “We delivered double-digit growth in EPS and operating income in the third quarter of 2013 compared to the prior year, driven by gross profit growth in all of our business sectors.”

Tracking share price, revenue and net income:

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Edward Lampert’s average 12-month return is currently 34.5%. His top buys, sells and holdings in graphic summary:



GuruFocus Real Time Picks reports the stock purchases and sales that gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. [/b]

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (6 votes)

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