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

Zacks Research lowered shares of Sonic Automotive (NYSE:SAH) from a hold rating to a strong sell rating in a report issued on Monday,Zacks.com reports.

A number of other equities analysts have also recently commented on the company. Needham & Company LLC reissued a “buy” rating and set a $90.00 target price on shares of Sonic Automotive in a report on Thursday, February 19th. Wall Street Zen cut Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Morgan Stanley set a $68.00 price objective on Sonic Automotive in a research note on Monday, December 8th. Barclays set a $67.00 price objective on Sonic Automotive in a report on Monday, February 23rd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Sonic Automotive in a research report on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Sonic Automotive currently has an average rating of “Hold” and an average target price of $77.50.

Sonic Automotive Stock Performance

NYSE:SAH opened at $63.92 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. The stock has a market capitalization of $2.15 billion, a PE ratio of 18.86 and a beta of 0.91. Sonic Automotive has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The company has a fifty day moving average of $62.35 and a two-hundred day moving average of $68.05.

Sonic Automotive (NYSE:SAH) last released its earnings results on Wednesday, February 18th. The company reported $1.52 EPS for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). The company had revenue of $3.87 billion for the quarter, compared to analysts’ expectations of $3.94 billion. Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%.The firm’s revenue for the quarter was down .6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.51 EPS. As a group, research analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be given a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 annualized dividend and a dividend yield of 2.4%. Sonic Automotive’s payout ratio is presently 44.84%.

Insider Transactions at Sonic Automotive

In other news, major shareholder Paul P. Rusnak acquired 11,481 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average cost of $59.95 per share, for a total transaction of $688,285.95. Following the completion of the transaction, the insider owned 5,100,000 shares in the company, valued at approximately $305,745,000. This trade represents a 0.23% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders have bought 100,000 shares of company stock worth $5,994,472 in the last ninety days. 42.65% of the stock is currently owned by company insiders.

Institutional Trading of Sonic Automotive

Several hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. raised its position in shares of Sonic Automotive by 992.5% during the 2nd 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 during the period. Camelot Portfolios LLC acquired a new stake in Sonic Automotive during the fourth quarter worth $41,000. Torren Management LLC purchased a new stake in Sonic Automotive in the fourth quarter valued at $50,000. Aster Capital Management DIFC Ltd purchased a new stake in Sonic Automotive in the third quarter valued at $63,000. Finally, National Bank of Canada FI acquired a new position in shares of Sonic Automotive in the 3rd quarter valued at $78,000. Hedge funds and other institutional investors 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.