Why Should You Consider Investing In Asbury Automotive Group Stocks?

Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retailers and service providers in the US, recently announced that its Board of Directors has approved an extension of the company’s stock repurchase plan, increasing the remaining amount to $400 million. This decision could present an opportunity for those interested in investing in Asbury Automotive Group stocks.

Why Extend the Buyback Program for Asbury Automotive Group Stocks?

“This extension of our previous authorization reflects our commitment to a disciplined approach to capital allocation,”

said David Holt, President and CEO of Asbury Automotive Group.

“The expanded buyback program gives us confidence in executing our strategy and the outlook for our business. With our strong cash flow and balance sheet, we believe we can deliver the best long-term returns to our shareholders.”

The move signals a positive outlook for Asbury Automotive Group stocks (NYSE: ABG) among its leadership team.

Current Stock Buyback Progress and Future Plans

As of 2024, Asbury has repurchased approximately 281,000 shares of Asbury Automotive Group stocks for about $59 million. The company had $144 million remaining for repurchasing its common stock under its current buyback program. With an additional authorization of $246 million, the total buyback authorization for Asbury Automotive Group stocks now stands at $400 million.

How Will the Stock Buyback Affect Asbury Automotive Group Stocks (NYSE: ABG)?

Under the revised stock repurchase program, Asbury Automotive Group may buy back its common stock, including Asbury Automotive Group stocks (NYSE: ABG), from time to time on the open market, in privately negotiated transactions, or otherwise as permitted by federal securities laws and other applicable legal and contractual requirements. The extent, quantity, and timing of any repurchases will depend on several factors, including Asbury’s stock price, overall economic and market conditions, potential impacts on capital structure, and expected returns from alternative uses of capital, such as strategic dealership acquisitions and capital investments. The new program does not obligate Asbury to repurchase any specific number of shares and may be modified, suspended, or terminated at any time without notice.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, Georgia, is one of the largest automotive retailers in the US. In late 2020, Asbury launched a multi-year strategic plan to increase revenue and profitability through organic growth, acquisitions, and innovative technologies, with a guest-centric approach that remains the company’s guiding star. As of March 31, 2024, Asbury operates 157 new vehicle dealerships, consisting of 206 franchises representing 31 domestic and foreign brands. Asbury also manages Total Care Auto, powered by Landcar, a leading provider of service contracts and other vehicle protection products, along with 37 collision repair centers. Investors considering US stocks may find Asbury Automotive Group stocks (NYSE: ABG) an attractive choice due to the company’s growth strategy and market position.

Why Invest in Asbury Automotive Group Stocks?

Asbury offers a comprehensive range of automotive products and services, including new and used vehicles; parts and services, including repair, maintenance, and collision repair; and financial and insurance products, such as third-party vehicle financing and after-sales services like extended service contracts, guaranteed asset protection, debt cancellation, and prepaid maintenance. The reputation of Asbury Automotive Group stocks is further solidified by its rankings: 18th in Forbes’ list of America’s Best Mid-Sized Companies for 2023, recognized by Newsweek as one of America’s Best Workplaces in 2023, and named one of the best companies to work for in retail by U.S. News & World Report.

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