Auto Trader Group Plc Stock Overview and Trading Guide

The Auto Trader Group Plc is a UK-based company that operates a popular online marketplace for buying and selling new and used cars. It's a household name in the UK, with millions of visitors each month.

The company was founded in 1977 and has since grown to become one of the largest online marketplaces for cars in the UK. Auto Trader Group Plc is listed on the London Stock Exchange, with the ticker symbol ATRK.

As a publicly traded company, Auto Trader Group Plc is subject to the usual market forces and economic conditions. However, the company has a strong track record of delivering steady growth and profits.

Auto Trader Group's financial performance has been impressive, with a 14.13% increase in revenue in 2023 compared to the previous year. This growth is a testament to the company's ability to adapt and innovate in the market.

The company's revenue has been steadily increasing over the years, with a 12% boost in the first half of fiscal 2024, driven by its car leasing platform and retail valuation products. This growth has helped the company's revenue rise to £570.90 million in 2023.

Auto Trader Group's earnings have also seen a significant increase, with a 9.83% jump in 2023 compared to the previous year. This growth is a result of the company's focus on improving its operations and increasing its revenue.

The company's pretax profit has risen, driven by double-digit revenue growth across all its segments. This growth has helped the company remain confident in its prospects for the year ahead.

Here's a breakdown of Auto Trader Group's revenue growth over the years:

The company's revenue growth has been impressive, but it's worth noting that the profit margin has been squeezed, leading to a decrease in profitability. However, the company remains confident in its prospects for the year ahead.

Stock Performance is a crucial aspect to consider when investing in Auto Trader Group. The current share price is UK£7.95, which is a 14.29% increase from the same time last year.

The 52-week high is UK£8.99, while the 52-week low is UK£6.66. This indicates a significant fluctuation in the stock price over the past year.

Here's a breakdown of the stock's performance over different time periods:

The stock's beta is 0.76, indicating a relatively stable performance.

Auto Trader Group's share price has been on a rollercoaster ride over the past year, with a 52-week high of UK£8.99 and a low of UK£6.66. The current share price is UK£7.95.

The company's beta of 0.76 indicates that its stock price is less volatile compared to the market. This means that the price of Auto Trader Group's shares is less likely to fluctuate wildly in response to market changes.

In the past year, the company's share price has increased by 14.29%, outperforming the market. Over the past five years, the share price has surged by 41.12%, a staggering increase of 210.47% since its initial public offering (IPO).

Here's a summary of Auto Trader Group's share price performance over the past year:

The company's stable share price is a testament to its strong financial performance, with revenue increasing by 14.13% in 2023 compared to the previous year.

The FTSE 100 had a remarkable first half of the year, with Auto Trader leading the pack. Auto Trader's sales and profits shot higher, with revenues rising 12% and operating profit increasing 10% during the six months to September.

This impressive growth is a testament to the company's strong performance. Auto Trader's success is a great example of a well-run business.

The FTSE 100 as a whole saw significant gains, with Auto Trader's performance setting the tone for the rest of the index.

Auto Trader Group's recent upgrades and announcements have generated significant interest among investors. The company's upgrade to a Zacks Rank #2 (Buy) suggests growing optimism about its earnings prospects.

Auto Trader Group has been actively buying back its own shares, with multiple transactions reported in November and December 2024. On December 12, 2024, the company announced a transaction in its own shares.

The company has also been updating its total voting rights, with the latest announcement made on February 1, 2025. This information is publicly available through UK RNS.

A summary of Auto Trader Group's recent news and announcements is as follows:

Auto Trader Group has a significantly high ROE of 47%, which is remarkable compared to the industry average of 32%.

The company's ROE laid the groundwork for its moderate 6.9% net income growth over the past five years.

Auto Trader Group's reported net income growth of 6.9% is lower than the industry growth of 18% over the last few years.

The investor should try to establish if the expected growth or decline in earnings is priced in to determine if the stock is placed for a bright or bleak future.

Auto Trader Group's earnings prospects are reflected by its upgrade to a Zacks Rank #2 (Buy), which might drive the stock higher in the near term.

This upgrade to a Buy rating could lead to increased optimism about the company's earnings prospects.