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

Shares of Sonic Automotive, Inc. (NYSE:SAHGet Rating) have earned an average rating of “Hold” from the five research firms that are presently covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $49.67.

A number of brokerages have issued reports on SAH. JPMorgan Chase & Co. lowered shares of Sonic Automotive from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $70.00 to $57.00 in a research report on Thursday, April 7th. Zacks Investment Research downgraded shares of Sonic Automotive from a “strong-buy” rating to a “hold” rating and set a $52.00 price target for the company. in a report on Thursday, March 10th. Seaport Res Ptn downgraded shares of Sonic Automotive from a “buy” rating to a “neutral” rating in a report on Friday, April 29th. StockNews.com downgraded shares of Sonic Automotive from a “buy” rating to a “hold” rating in a report on Friday. Finally, Morgan Stanley cut their price target on shares of Sonic Automotive from $43.00 to $40.00 in a report on Friday.

In other news, major shareholder Paul P. Rusnak acquired 127,475 shares of the firm’s stock in a transaction dated Wednesday, April 6th. The stock was bought at an average cost of $41.89 per share, for a total transaction of $5,339,927.75. Following the completion of the transaction, the insider now directly owns 5,000,000 shares in the company, valued at approximately $209,450,000. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, President Jeff Dyke sold 6,395 shares of the stock in a transaction on Friday, March 4th. The stock was sold at an average price of $52.37, for a total transaction of $334,906.15. The disclosure for this sale can be found here. Corporate insiders own 36.07% of the company’s stock.

Large investors have recently bought and sold shares of the business. Point72 Hong Kong Ltd acquired a new stake in Sonic Automotive in the first quarter worth $26,000. Counterpoint Mutual Funds LLC bought a new position in shares of Sonic Automotive in the fourth quarter valued at $27,000. Dark Forest Capital Management LP bought a new position in shares of Sonic Automotive in the third quarter valued at $38,000. Pinebridge Investments L.P. bought a new position in shares of Sonic Automotive in the fourth quarter valued at $45,000. Finally, Penserra Capital Management LLC bought a new position in shares of Sonic Automotive in the third quarter valued at $84,000. Institutional investors and hedge funds own 59.34% of the company’s stock.

Shares of SAH opened at $43.16 on Tuesday. Sonic Automotive has a 52 week low of $38.64 and a 52 week high of $58.00. The firm has a market cap of $1.71 billion, a P/E ratio of 4.71 and a beta of 2.05. The firm’s 50-day simple moving average is $44.78 and its 200 day simple moving average is $47.66. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.46 and a current ratio of 1.10.

Sonic Automotive (NYSE:SAHGet Rating) last announced its quarterly earnings results on Thursday, April 28th. The company reported $2.33 EPS for the quarter, missing analysts’ consensus estimates of $2.45 by ($0.12). Sonic Automotive had a net margin of 2.97% and a return on equity of 39.37%. The company had revenue of $3.59 billion during the quarter, compared to analyst estimates of $3.70 billion. During the same quarter last year, the company posted $1.23 EPS. The firm’s quarterly revenue was up 28.7% on a year-over-year basis. As a group, equities analysts forecast that Sonic Automotive will post 10.23 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 15th. Shareholders of record on Wednesday, June 15th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.32%. The ex-dividend date of this dividend is Tuesday, June 14th. Sonic Automotive’s dividend payout ratio (DPR) is currently 10.92%.

About Sonic Automotive (Get Rating)

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in two segments, Franchised Dealerships and EchoPark. 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.

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