Sonic Automotive (NYSE:SAH) Stock Price Target Cut by Morgan Stanley

Sonic Automotive (NYSE:SAH) had its price target decreased by equities researchers at Morgan Stanley from $72.00 to $57.00 in a report released on Monday, MarketBeat Ratings reports. The brokerage currently has an “underweight” rating on the stock. Morgan Stanley’s price target indicates a potential downside of 6.59% from the stock’s current price.

SAH has been the topic of a number of other research reports. JPMorgan Chase & Co. decreased their target price on shares of Sonic Automotive from $76.00 to $72.00 and set an “underweight” rating on the stock in a report on Tuesday, August 4th. Stephens set a $89.00 price target on shares of Sonic Automotive in a report on Monday, July 13th. Bank of America boosted their price target on shares of Sonic Automotive from $91.00 to $108.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Needham & Company LLC increased their price objective on Sonic Automotive from $90.00 to $139.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Finally, Weiss Ratings lowered Sonic Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 16th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $94.50.

Sonic Automotive Stock Performance

NYSE:SAH opened at $61.02 on Monday. The business’s fifty day moving average is $76.08 and its 200 day moving average is $78.21. The firm has a market cap of $1.93 billion, a price-to-earnings ratio of 9.73, a PEG ratio of 1.01 and a beta of 0.92. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.25 and a current ratio of 1.01. Sonic Automotive has a 52-week low of $54.11 and a 52-week high of $113.67.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Thursday, July 30th. The company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.75 by $0.07. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The business had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same quarter last year, the company earned $2.19 EPS. The firm’s revenue was up 7.6% compared to the same quarter last year. Research analysts predict that Sonic Automotive will post 6.92 EPS for the current year.

Insider Activity

In related news, major shareholder Paul P. Rusnak bought 27,756 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The stock was bought at an average cost of $59.76 per share, for a total transaction of $1,658,698.56. Following the completion of the transaction, the insider owned 5,149,401 shares of the company’s stock, valued at approximately $307,728,203.76. The trade was a 0.54% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 43.68% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

A number of large investors have recently added to or reduced their stakes in SAH. State of Wyoming purchased a new position in shares of Sonic Automotive in the 1st quarter worth about $79,000. Ameritas Advisory Services LLC bought a new stake in Sonic Automotive in the 2nd quarter worth approximately $88,000. Hennion & Walsh Asset Management Inc. bought a new stake in Sonic Automotive in the 2nd quarter worth approximately $208,000. Fifth Third Bancorp boosted its stake in Sonic Automotive by 2,981.1% in the first quarter. Fifth Third Bancorp now owns 4,067 shares of the company’s stock worth $279,000 after buying an additional 3,935 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Sonic Automotive in the second quarter worth approximately $373,000. Hedge funds and other institutional investors own 46.92% of the company’s stock.

More Sonic Automotive News

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: Major shareholder Paul P. Rusnak purchased 21,645 shares for approximately $1.29 million at an average price of $59.50. The purchase increased his direct stake by 0.42%, a potentially supportive signal of insider confidence. SEC insider transaction filing
• Positive Sentiment: Sonic Automotive reported approximately 8% second-quarter revenue growth, indicating continued sales expansion despite a challenging consumer and auto-market backdrop. Sonic Automotive stock reports 8 percent Q2 revenue growth
• Neutral Sentiment: Sell-side coverage remains mixed, with brokerages collectively rating the stock “Hold.” Analysts’ opinions on Sonic Automotive also remain divided, suggesting limited consensus on the company’s earnings outlook. Sonic Automotive stock rated Hold
• Negative Sentiment: JPMorgan lowered its price target from $72 to $64 and assigned an “Underweight” rating. Although the new target implies modest upside based on the referenced price, the reduction signals weaker expectations for valuation or operating performance. JPMorgan lowers Sonic Automotive price target
• Negative Sentiment: Morgan Stanley also cut its target, from $72 to $57, and maintained an “Underweight” rating. This target is below the referenced share price and reinforces the broader analyst concern weighing on SAH. Morgan Stanley cuts Sonic Automotive price target

About Sonic Automotive

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.