Sonic Automotive (NYSE:SAH) Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Sonic Automotive (NYSE:SAH – Free Report) from a hold rating to a sell rating in a report published on Saturday,Wall Street Zen reports.

Other equities analysts have also recently issued research reports about the company. Zacks Research cut Sonic Automotive from a “hold” rating to a “strong sell” rating in a research report on Monday, October 12th. JPMorgan Chase & Co. decreased their price objective on Sonic Automotive from $63.00 to $58.00 and set an “underweight” rating for the company in a research report on Wednesday, November 4th. Barclays lowered their target price on Sonic Automotive from $75.00 to $73.00 and set an “equal weight” rating on the stock in a research note on Wednesday, November 4th. Stephens set a $89.00 target price on Sonic Automotive in a report on Monday, July 13th. Finally, UBS Group dropped their target price on Sonic Automotive from $107.00 to $74.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $81.62.

Read Our Latest Stock Analysis on SAH

Sonic Automotive Stock Up 2.5%

Shares of NYSE:SAH opened at $63.26 on Friday. The stock has a market cap of $2.00 billion, a P/E ratio of 10.17, a P/E/G ratio of 1.29 and a beta of 0.98. The firm has a fifty day moving average price of $66.00 and a 200 day moving average price of $73.07. The company has a debt-to-equity ratio of 1.74, a current ratio of 0.95 and a quick ratio of 0.20. Sonic Automotive has a 1-year low of $54.11 and a 1-year high of $113.67.

Sonic Automotive (NYSE:SAH – Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.30 EPS for the quarter, missing analysts’ consensus estimates of $1.66 by ($0.36). Sonic Automotive had a net margin of 1.33% and a return on equity of 20.05%. The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $4.03 billion. During the same quarter in the prior year, the firm posted $1.41 earnings per share. The company’s revenue for the quarter was up .4% compared to the same quarter last year. Sell-side analysts predict that Sonic Automotive will post 6.42 EPS for the current year.

Sonic Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Tuesday, December 15th will be issued a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. Sonic Automotive’s payout ratio is presently 26.37%.

Insider Activity

In other news, major shareholder Paul P. Rusnak purchased 27,756 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The stock was purchased at an average cost of $59.76 per share, with a total value of $1,658,698.56. Following the completion of the acquisition, the insider directly owned 5,149,401 shares of the company’s stock, valued at approximately $307,728,203.76. This trade represents a 0.54% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders have bought 76,776 shares of company stock worth $4,584,694 in the last quarter. Insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP lifted its holdings in shares of Sonic Automotive by 3.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company’s stock valued at $90,088,000 after buying an additional 48,599 shares during the period. Empowered Funds LLC grew its holdings in Sonic Automotive by 64.4% during the first quarter. Empowered Funds LLC now owns 131,302 shares of the company’s stock worth $9,003,000 after acquiring an additional 51,420 shares during the period. Heartland Advisors Inc. acquired a new position in Sonic Automotive during the first quarter worth $8,450,000. Renaissance Technologies LLC grew its holdings in Sonic Automotive by 11.5% during the first quarter. Renaissance Technologies LLC now owns 88,126 shares of the company’s stock worth $6,043,000 after acquiring an additional 9,100 shares during the period. Finally, Denali Advisors LLC purchased a new position in Sonic Automotive in the second quarter worth $4,799,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

About Sonic Automotive

(Get Free Report)

Sonic Automotive, Inc is a U.S. automotive retailer that sells new and used vehicles through franchised dealerships and its EchoPark used-vehicle business. Its dealerships represent a range of automotive manufacturers and serve customers in multiple states.

The company also provides automotive services, including vehicle maintenance and repair, collision repair, parts sales, and financing and insurance products. EchoPark focuses on the sale of pre-owned vehicles.

Founded in 1997 by automotive entrepreneur O.

Further Reading

Analyst Recommendations for Sonic Automotive (NYSE:SAH)

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