Sonic Automotive, Inc. (NYSE:SAH) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have received a consensus recommendation of “Reduce” from the four analysts that are presently covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation and one has given a buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $53.40.

A number of equities research analysts recently issued reports on the company. StockNews.com lowered Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Thursday, January 11th. Morgan Stanley raised their price target on Sonic Automotive from $35.00 to $40.00 and gave the stock an “underweight” rating in a research note on Thursday, February 29th. TheStreet raised Sonic Automotive from a “c+” rating to a “b” rating in a research note on Wednesday, March 6th. Finally, Bank of America decreased their price target on Sonic Automotive from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Thursday, February 29th.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio increased its holdings in Sonic Automotive by 2,718.9% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 29,880 shares of the company’s stock worth $1,427,000 after purchasing an additional 28,820 shares during the period. Assenagon Asset Management S.A. purchased a new position in Sonic Automotive during the 4th quarter worth $1,770,000. Graham Capital Management L.P. purchased a new position in Sonic Automotive during the 3rd quarter worth $328,000. FMR LLC increased its holdings in shares of Sonic Automotive by 2.0% in the 3rd quarter. FMR LLC now owns 57,581 shares of the company’s stock valued at $2,750,000 after acquiring an additional 1,118 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Sonic Automotive by 4.4% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 381,211 shares of the company’s stock valued at $18,207,000 after acquiring an additional 16,117 shares during the period. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

Sonic Automotive Price Performance

NYSE:SAH opened at $50.87 on Friday. The firm has a market capitalization of $1.73 billion, a price-to-earnings ratio of 10.23 and a beta of 1.82. Sonic Automotive has a 1 year low of $39.02 and a 1 year high of $60.24. The business has a 50 day simple moving average of $52.38 and a 200-day simple moving average of $51.84. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.10 and a quick ratio of 0.41.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Wednesday, February 14th. The company reported $1.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.80 by ($0.17). Sonic Automotive had a return on equity of 28.06% and a net margin of 1.24%. The business had revenue of $3.58 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same period in the prior year, the business posted $2.61 earnings per share. Sonic Automotive’s revenue was down .2% on a year-over-year basis. Equities analysts forecast that Sonic Automotive will post 5.75 EPS for the current year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Shareholders of record on Friday, March 15th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, March 14th. This represents a $1.20 annualized dividend and a yield of 2.36%. Sonic Automotive’s payout ratio is currently 24.14%.

Sonic Automotive Company Profile

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.