Sonic Automotive (NYSE:SAH) Upgraded to “Hold” at Zacks Research

Zacks Research upgraded shares of Sonic Automotive (NYSE:SAH) from a strong sell rating to a hold rating in a report released on Tuesday,Zacks.com reports.

SAH has been the topic of several other research reports. JPMorgan Chase & Co. increased their target price on Sonic Automotive from $65.00 to $67.00 and gave the stock an “underweight” rating in a research report on Friday, April 17th. Wall Street Zen downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Sonic Automotive in a research report on Friday, March 27th. Barclays set a $67.00 price objective on Sonic Automotive in a research report on Monday, February 23rd. Finally, Bank of America initiated coverage on Sonic Automotive in a research report on Wednesday, March 4th. They issued a “neutral” rating on the stock. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $77.50.

Sonic Automotive Stock Performance

Sonic Automotive stock traded up $5.23 during trading on Tuesday, hitting $78.54. The stock had a trading volume of 121,378 shares, compared to its average volume of 272,315. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $89.62. The company has a quick ratio of 0.32, a current ratio of 1.09 and a debt-to-equity ratio of 1.80. The stock’s 50 day moving average is $65.25 and its two-hundred day moving average is $64.36. The stock has a market cap of $2.64 billion, a price-to-earnings ratio of 23.17, a price-to-earnings-growth ratio of 2.10 and a beta of 0.82.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.70 by ($0.08). Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%.The firm’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.48 EPS. As a group, analysts predict that Sonic Automotive will post 6.54 EPS for the current year.

Sonic Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th were paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, March 13th. Sonic Automotive’s dividend payout ratio (DPR) is 44.84%.

Insider Activity

In related news, major shareholder Paul P. Rusnak acquired 48,540 shares of Sonic Automotive stock in a transaction dated Friday, February 13th. The shares were purchased at an average cost of $59.92 per share, with a total value of $2,908,516.80. Following the completion of the purchase, the insider owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. This represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders bought 100,000 shares of company stock worth $5,994,472 over the last quarter. 43.68% of the stock is currently owned by company insiders.

Institutional Trading of Sonic Automotive

Large investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its stake in shares of Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares during the last quarter. Camelot Portfolios LLC bought a new stake in shares of Sonic Automotive in the fourth quarter worth about $41,000. Torren Management LLC bought a new stake in shares of Sonic Automotive in the fourth quarter worth about $50,000. Aster Capital Management DIFC Ltd bought a new stake in shares of Sonic Automotive in the third quarter worth about $63,000. Finally, National Bank of Canada FI bought a new stake in shares of Sonic Automotive in the third quarter worth about $78,000. 46.92% of the stock is owned by institutional investors.

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.