Sonic Automotive (NYSE:SAH) Rating Lowered to Strong Sell at Zacks Research

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

SAH has been the topic of a number of other research reports. Morgan Stanley set a $68.00 price target on shares of Sonic Automotive in a research report on Monday, December 8th. Stephens dropped their price objective on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 19th. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research note on Thursday, November 6th. Barclays set a $67.00 target price on Sonic Automotive in a report on Monday, February 23rd. Finally, Needham & Company LLC reissued a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research note on Thursday, February 19th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $77.50.

Sonic Automotive Stock Performance

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

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

Insider Activity at Sonic Automotive

In other news, major shareholder Paul P. Rusnak bought 11,481 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average cost of $59.95 per share, with a total value of $688,285.95. Following the completion of the transaction, the insider directly owned 5,100,000 shares of the company’s stock, valued at $305,745,000. This trade represents a 0.23% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders purchased a total of 100,000 shares of company stock worth $5,994,472 in the last ninety days. Insiders own 42.65% of the company’s stock.

Institutional Trading of Sonic Automotive

Several hedge funds have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its holdings in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after buying an additional 397 shares during the last quarter. Camelot Portfolios LLC bought a new stake in shares of Sonic Automotive during the fourth quarter worth about $41,000. Torren Management LLC acquired a new stake in shares of Sonic Automotive in the 4th quarter worth about $50,000. Aster Capital Management DIFC Ltd bought a new position in Sonic Automotive in the 3rd quarter valued at about $63,000. Finally, National Bank of Canada FI acquired a new position in Sonic Automotive during the 3rd quarter valued at about $78,000. 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.