Sonic Automotive (NYSE:SAH) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen cut shares of Sonic Automotive (NYSE:SAH) from a buy rating to a hold rating in a research report released on Sunday morning.

Other research analysts also recently issued research reports about the stock. JPMorgan Chase & Co. reduced their price target on shares of Sonic Automotive from $76.00 to $70.00 and set an “underweight” rating on the stock in a research report on Wednesday, November 5th. Barclays began coverage on shares of Sonic Automotive in a research report on Tuesday, November 11th. They set an “equal weight” rating and a $71.00 target price on the stock. Citigroup raised shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target for the company in a report on Thursday, November 6th. Needham & Company LLC dropped their price objective on shares of Sonic Automotive from $95.00 to $90.00 and set a “buy” rating for the company in a research report on Friday, October 24th. Finally, Zacks Research lowered Sonic Automotive from a “hold” rating to a “strong sell” rating in a research report on Monday, December 15th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $80.25.

Sonic Automotive Stock Up 0.3%

Shares of SAH opened at $64.64 on Friday. The business’s 50 day simple moving average is $63.27 and its 200-day simple moving average is $72.67. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The company has a market capitalization of $2.21 billion, a P/E ratio of 17.47 and a beta of 0.92. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Thursday, October 23rd. The company reported $1.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.82 by ($0.41). The business had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $3.59 billion. Sonic Automotive had a net margin of 0.86% and a return on equity of 21.65%. The company’s revenue for the quarter was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.26 EPS. As a group, sell-side analysts predict that Sonic Automotive will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 15th. Shareholders of record on Monday, December 15th will be given a dividend of $0.38 per share. The ex-dividend date is Monday, December 15th. This represents a $1.52 annualized dividend and a dividend yield of 2.4%. Sonic Automotive’s payout ratio is presently 41.08%.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently made changes to their positions in SAH. Northwestern Mutual Wealth Management Co. lifted its stake in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after buying an additional 397 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of Sonic Automotive in the 3rd quarter valued at about $63,000. National Bank of Canada FI bought a new stake in shares of Sonic Automotive in the 3rd quarter valued at about $78,000. CoreCap Advisors LLC acquired a new stake in shares of Sonic Automotive in the 3rd quarter valued at approximately $109,000. Finally, Raymond James Financial Inc. bought a new position in Sonic Automotive during the 2nd quarter worth approximately $168,000. 46.92% of the stock is owned by institutional investors and hedge funds.

About Sonic Automotive

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.