Sonic Automotive (NYSE:SAH) Stock Falls 5.5% – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH) was down 5.5% during trading on Wednesday. The company traded as low as $60.29 and last traded at $60.4880. 193,237 shares were traded during trading, a decline of 33% from the average daily volume of 287,075 shares. The stock had previously closed at $64.03.

Wall Street Analysts Forecast Growth

SAH has been the subject of several recent research reports. Needham & Company LLC lifted their target price on shares of Sonic Automotive from $90.00 to $139.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Zacks Research lowered Sonic Automotive from a “hold” rating to a “strong sell” rating in a research note on Monday, October 12th. Weiss Ratings upgraded shares of Sonic Automotive from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Bank of America raised their target price on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Finally, Morgan Stanley dropped their price objective on Sonic Automotive from $72.00 to $57.00 and set an “underweight” rating for the company in a report on Monday, October 5th. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $90.12.

Sonic Automotive Stock Down 3.7%

The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. The stock has a 50 day simple moving average of $69.81 and a 200-day simple moving average of $77.96. The firm has a market cap of $1.92 billion, a PE ratio of 9.72, a PEG ratio of 1.15 and a beta of 0.92.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.75 by $0.07. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%. The firm had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same period last year, the company earned $2.19 earnings per share. The company’s revenue was up 7.6% on a year-over-year basis. Sell-side analysts predict that Sonic Automotive, Inc. will post 6.71 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Tuesday, September 15th were issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Tuesday, September 15th. Sonic Automotive’s payout ratio is presently 26.16%.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 27,756 shares of the business’s stock in a transaction on Monday, October 5th. The shares were acquired at an average cost of $59.76 per share, for a total transaction of $1,658,698.56. Following the purchase, the insider owned 5,149,401 shares in the company, valued at approximately $307,728,203.76. This trade represents a 0.54% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders purchased 76,776 shares of company stock valued at $4,584,694. Corporate insiders own 43.68% of the company’s stock.

Institutional Trading of Sonic Automotive

A number of large investors have recently made changes to their positions in the stock. State of Wyoming bought a new stake in Sonic Automotive in the 1st quarter worth approximately $79,000. Ameritas Advisory Services LLC bought a new position in shares of Sonic Automotive in the 2nd quarter worth approximately $88,000. CoreCap Advisors LLC lifted its stake in shares of Sonic Automotive by 15.5% in the 3rd quarter. CoreCap Advisors LLC now owns 1,550 shares of the company’s stock worth $94,000 after purchasing an additional 208 shares during the period. Hennion & Walsh Asset Management Inc. purchased a new position in shares of Sonic Automotive in the second quarter worth approximately $208,000. Finally, Fifth Third Bancorp boosted its holdings in shares of Sonic Automotive by 2,981.1% in the first quarter. Fifth Third Bancorp now owns 4,067 shares of the company’s stock worth $279,000 after buying an additional 3,935 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors.

About Sonic Automotive

Sonic Automotive, Inc is a U.S.-based automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, maintenance and repair services, replacement parts, and collision-repair services. Sonic Automotive also operates EchoPark Automotive, a used-vehicle business focused on offering pre-owned vehicles and related finance and service products through dedicated retail locations.

Founded in 1997 by automotive entrepreneur O.