Sonic Automotive (NYSE:SAH) Downgraded by Zacks Research to Strong Sell

Sonic Automotive (NYSE:SAH) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. Barclays set a $67.00 price target on Sonic Automotive in a report on Monday, February 23rd. Needham & Company LLC reissued a “buy” rating and set a $90.00 target price on shares of Sonic Automotive in a research note on Thursday, February 19th. Morgan Stanley set a $68.00 target price on shares of Sonic Automotive in a report on Monday, December 8th. Stephens reduced their price target on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating for the company in a report on Thursday, February 19th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research report on Friday, January 16th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Sonic Automotive currently has a consensus rating of “Hold” and a consensus price target of $77.50.

Sonic Automotive Stock Up 2.2%

Shares of NYSE:SAH opened at $62.81 on Monday. The company has a 50 day moving average price of $62.36 and a two-hundred day moving average price of $68.08. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.32 and a current ratio of 1.09. The company has a market capitalization of $2.11 billion, a PE ratio of 18.53 and a beta of 0.91. Sonic Automotive has a 52 week low of $52.00 and a 52 week high of $89.62.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.01). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The firm had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.94 billion. During the same period last year, the firm earned $1.51 EPS. Sonic Automotive’s quarterly revenue was down .6% on a year-over-year basis. Analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current year.

Insider Buying and Selling

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 48,540 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The stock was acquired at an average price of $59.92 per share, with a total value of $2,908,516.80. Following the completion of the transaction, the insider owned 5,088,519 shares in the company, valued at approximately $304,904,058.48. This trade represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired a total of 100,000 shares of company stock worth $5,994,472 in the last ninety days. Corporate insiders own 42.65% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Large investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after acquiring an additional 397 shares in the last quarter. Camelot Portfolios LLC acquired a new position in Sonic Automotive during the fourth quarter valued at approximately $41,000. Torren Management LLC bought a new position in Sonic Automotive in the fourth quarter valued at approximately $50,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Sonic Automotive during the 3rd quarter worth approximately $63,000. Finally, National Bank of Canada FI bought a new stake in shares of Sonic Automotive during the 3rd quarter worth approximately $78,000. 46.92% of the stock is currently 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.