Sonic Automotive (NYSE:SAH) Cut to Buy at Wall Street Zen

Wall Street Zen lowered shares of Sonic Automotive (NYSE:SAH) from a strong-buy rating to a buy rating in a research report released on Saturday morning.

Several other research firms have also weighed in on SAH. Benchmark began coverage on shares of Sonic Automotive in a research report on Wednesday, May 28th. They set a “buy” rating and a $76.00 price objective for the company. Needham & Company LLC decreased their target price on shares of Sonic Automotive from $93.00 to $74.00 and set a “buy” rating for the company in a report on Thursday, April 24th. Bank of America raised their target price on shares of Sonic Automotive from $80.00 to $94.00 and gave the stock a “buy” rating in a report on Monday, June 16th. JPMorgan Chase & Co. decreased their target price on shares of Sonic Automotive from $80.00 to $65.00 and set an “overweight” rating for the company in a report on Thursday, March 27th. Finally, Citigroup began coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They issued a “neutral” rating and a $64.00 target price for the company. Two equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $74.71.

Sonic Automotive Stock Performance

NYSE:SAH opened at $80.44 on Friday. Sonic Automotive has a twelve month low of $51.27 and a twelve month high of $80.65. The company has a current ratio of 1.09, a quick ratio of 0.38 and a debt-to-equity ratio of 1.67. The company has a 50-day moving average of $67.82 and a 200-day moving average of $66.48. The firm has a market cap of $2.73 billion, a price-to-earnings ratio of 11.46, a price-to-earnings-growth ratio of 0.69 and a beta of 1.02.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Thursday, April 24th. The company reported $1.48 earnings per share for the quarter, beating the consensus estimate of $1.46 by $0.02. Sonic Automotive had a net margin of 1.69% and a return on equity of 19.42%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same quarter last year, the firm posted $1.36 EPS. The business’s revenue for the quarter was up 7.9% on a year-over-year basis. Analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Shareholders of record on Friday, June 13th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 1.74%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive’s dividend payout ratio (DPR) is presently 19.94%.

Insider Buying and Selling at Sonic Automotive

In other news, President Jeff Dyke sold 576 shares of Sonic Automotive stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $70.02, for a total value of $40,331.52. Following the transaction, the president now owns 605,393 shares of the company’s stock, valued at $42,389,617.86. This trade represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold 50,000 shares of company stock worth $3,502,062 over the last ninety days. 42.65% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors have recently modified their holdings of the company. Smartleaf Asset Management LLC raised its position in shares of Sonic Automotive by 515.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 480 shares of the company’s stock valued at $30,000 after purchasing an additional 402 shares during the period. Canada Pension Plan Investment Board bought a new position in shares of Sonic Automotive in the fourth quarter valued at approximately $51,000. Quarry LP bought a new position in shares of Sonic Automotive in the first quarter valued at approximately $84,000. Aster Capital Management DIFC Ltd raised its position in shares of Sonic Automotive by 1,429.7% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company’s stock valued at $98,000 after purchasing an additional 1,444 shares during the period. Finally, KLP Kapitalforvaltning AS bought a new position in shares of Sonic Automotive in the fourth quarter valued at approximately $185,000. Institutional investors own 46.92% of the company’s stock.

About Sonic Automotive

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.