Sonic Automotive (NYSE:SAH) Downgraded by Morgan Stanley to “Underweight”

Morgan Stanley downgraded shares of Sonic Automotive (NYSE:SAH) from an equal weight rating to an underweight rating in a research report sent to investors on Friday, MarketBeat reports. The firm currently has $72.00 price objective on the stock.

SAH has been the subject of a number of other reports. Bank of America lifted their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Stephens set a $89.00 price objective on Sonic Automotive in a report on Monday, July 13th. UBS Group upped their target price on Sonic Automotive from $90.00 to $109.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Weiss Ratings upgraded Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 23rd. Finally, Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $97.89.

Sonic Automotive Stock Down 3.0%

SAH stock opened at $82.33 on Friday. Sonic Automotive has a twelve month low of $54.11 and a twelve month high of $113.67. The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The business has a 50 day moving average price of $88.99 and a two-hundred day moving average price of $74.73. The company has a market cap of $2.60 billion, a price-to-earnings ratio of 13.13, a P/E/G ratio of 1.36 and a beta of 0.86.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.75 by $0.07. The business had revenue of $3.93 billion for the quarter, compared to the consensus estimate of $3.78 billion. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.19 earnings per share. Analysts anticipate that Sonic Automotive will post 6.93 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive’s dividend payout ratio is presently 26.16%.

Insider Activity at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 50,000 shares of the firm’s stock in a transaction dated 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 transaction, the president directly owned 111,622 shares of the company’s stock, valued at $9,261,277.34. This trade represents a 30.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 100,000 shares of company stock valued at $8,408,160 in the last quarter. 43.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. boosted 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 in the last quarter. Camelot Portfolios LLC acquired a new position in Sonic Automotive during the fourth quarter worth about $41,000. Torren Management LLC bought a new position in shares of Sonic Automotive in the fourth quarter worth about $50,000. National Bank of Canada FI acquired a new stake in shares of Sonic Automotive in the 3rd quarter valued at approximately $78,000. Finally, State of Wyoming acquired a new stake in shares of Sonic Automotive in the 1st quarter valued at approximately $79,000. 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.