Sonic Automotive (NYSE:SAH) Trading Down 5.5% – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH)’s stock price fell 5.5% during trading on Wednesday . The stock traded as low as $79.93 and last traded at $79.0290. 72,077 shares changed hands during trading, a decline of 74% from the average session volume of 275,553 shares. The stock had previously closed at $83.65.

Analyst Ratings Changes

Several brokerages recently commented on SAH. Needham & Company LLC reissued a “buy” rating and set a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Citigroup lifted their target price on Sonic Automotive from $82.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Morgan Stanley set a $72.00 target price on Sonic Automotive in a report on Thursday, May 7th. Finally, Bank of America started coverage on Sonic Automotive in a report on Wednesday, March 4th. They set a “neutral” rating on the stock. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $81.63.

Sonic Automotive Price Performance

The stock has a 50 day moving average of $76.33 and a two-hundred day moving average of $67.67. The stock has a market cap of $2.47 billion, a PE ratio of 24.86, a PEG ratio of 1.92 and a beta of 0.88. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.22. The firm had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.Sonic Automotive’s revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business posted $1.48 EPS. Equities analysts anticipate that Sonic Automotive, Inc. will post 6.92 EPS for the current year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be paid a $0.41 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a yield of 2.1%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.38. Sonic Automotive’s dividend payout ratio (DPR) is 52.23%.

Insider Buying and Selling

In related news, President Jeff Dyke sold 50,000 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president owned 111,622 shares of the company’s stock, valued at approximately $9,261,277.34. This trade represents a 30.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 100,000 shares of company stock valued at $8,408,160. Company insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Sonic Automotive by 6.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock worth $125,278,000 after acquiring an additional 96,836 shares in the last quarter. Public Sector Pension Investment Board lifted its stake in Sonic Automotive by 39.5% in the 3rd quarter. Public Sector Pension Investment Board now owns 68,842 shares of the company’s stock worth $5,238,000 after acquiring an additional 19,483 shares in the last quarter. Tudor Investment Corp ET AL lifted its stake in Sonic Automotive by 41.2% in the 3rd quarter. Tudor Investment Corp ET AL now owns 183,522 shares of the company’s stock worth $13,964,000 after acquiring an additional 53,510 shares in the last quarter. Picton Mahoney Asset Management purchased a new stake in Sonic Automotive in the 3rd quarter worth about $779,000. Finally, GSA Capital Partners LLP lifted its stake in Sonic Automotive by 172.5% in the 3rd quarter. GSA Capital Partners LLP now owns 14,717 shares of the company’s stock worth $1,120,000 after acquiring an additional 9,317 shares in the last quarter. 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.