AutoNation's First Quarter Is a Record

We feel AutoNation had an excellent quarter to start 2022, and we are raising our fair value estimate to $137 from $132. The change is from the time value of money and a lower share count to factor in more share repurchases because AutoNation through April 19 spent $518 million on buybacks. We were modeling $500 million for the whole year and now model $1 billion, which may need to be increased if the company focuses more on share repurchases than acquisitions this year. The buyback program has $376 million available as of April 19, and we believe the board will authorize more if needed, which we would not mind as the stock trades well below our fair value estimate.