Sonic Automotive (NYSE:SAH) Cut to Underweight at Morgan Stanley

Sonic Automotive (NYSE:SAH) was downgraded by research analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a report released on Friday. They presently have a $72.00 price target on the stock. Morgan Stanley’s price target indicates a potential downside of 14.97% from the company’s previous close.

Several other research firms have also commented on SAH. Stephens set a $89.00 target price on Sonic Automotive in a report on Monday, July 13th. UBS Group upped their price objective on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Citigroup raised their price objective on shares of Sonic Automotive from $95.00 to $115.00 and gave the stock a “buy” rating in a research note on Monday. Barclays lifted their target price on shares of Sonic Automotive from $77.00 to $92.00 and gave the company an “equal weight” rating in a report on Wednesday, July 15th. Finally, Bank of America boosted their target price on shares of Sonic Automotive from $91.00 to $108.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $97.89.

Sonic Automotive Trading Down 2.5%

NYSE SAH opened at $84.67 on Friday. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $113.67. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. The company has a market capitalization of $2.68 billion, a PE ratio of 13.50, a P/E/G ratio of 1.39 and a beta of 0.86. The company has a fifty day moving average of $89.00 and a 200 day moving average of $74.68.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.75 by $0.07. The business had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The company’s revenue was up 7.6% on a year-over-year basis. During the same quarter last year, the business posted $2.19 EPS. Research analysts forecast that Sonic Automotive will post 6.93 earnings per share for the current year.

Insider Buying and Selling

In other news, President Jeff Dyke sold 35,114 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total value of $2,992,415.08. Following the completion of the sale, the president directly owned 543,668 shares in the company, valued at $46,331,386.96. The trade was a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 100,000 shares of company stock valued at $8,408,160 over the last quarter. 43.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sonic Automotive

Institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its position in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after acquiring an additional 397 shares during the period. Camelot Portfolios LLC purchased a new stake in shares of Sonic Automotive during the fourth quarter worth about $41,000. Torren Management LLC purchased a new stake in shares of Sonic Automotive during the fourth quarter worth about $50,000. National Bank of Canada FI acquired a new position in shares of Sonic Automotive during the 3rd quarter worth about $78,000. Finally, State of Wyoming purchased a new position in Sonic Automotive in the 1st quarter valued at about $79,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.