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Auto Trader Executes Share Buyback to Optimize Capital Structure

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Auto Trader Executes Share Buyback to Optimize Capital Structure

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Auto Trader ( (GB:AUTO) ) just unveiled an update.

Auto Trader Group plc announced the repurchase of 373,900 of its ordinary shares for cancellation at an average price of 775.6573 pence per share. This transaction, executed through Merrill Lynch International, reduces the number of shares in circulation, potentially increasing the value of remaining shares and reflecting the company’s strategy to manage its capital structure effectively.

The most recent analyst rating on (GB:AUTO) stock is a Sell with a £7.65 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Spark’s Take on GB:AUTO Stock

According to Spark, TipRanks’ AI Analyst, GB:AUTO is a Outperform.

Auto Trader’s strong financial performance and positive earnings call are the primary drivers of its score. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. Challenges highlighted in the earnings call, such as the digital services tax and declining used car prices, also weigh on the overall score.

To see Spark’s full report on GB:AUTO stock, click here.

More about Auto Trader

Auto Trader Group plc operates in the automotive industry, primarily focusing on digital automotive marketplace services. The company facilitates the buying and selling of vehicles through its online platform, catering to both consumers and dealers.

Average Trading Volume: 1,827,064

Technical Sentiment Signal: Hold

Current Market Cap: £6.71B

For an in-depth examination of AUTO stock, go to TipRanks’ Overview page.

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