Sonic Automotive (NYSE:SAH) Coverage Initiated at Bank of America

Equities research analysts at Bank of America started coverage on shares of Sonic Automotive (NYSE:SAH) in a research report issued to clients and investors on Wednesday. The brokerage set a “neutral” rating on the stock.

A number of other equities analysts have also recently commented on SAH. JPMorgan Chase & Co. dropped their target price on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a report on Friday, January 16th. Needham & Company LLC restated a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research report on Thursday, February 19th. Stephens cut their price objective on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 19th. Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Finally, Zacks Research cut shares of Sonic Automotive from a “hold” rating to a “strong sell” rating in a research note on Monday. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Sonic Automotive presently has an average rating of “Hold” and an average price target of $77.50.

Sonic Automotive Stock Down 2.6%

NYSE SAH opened at $62.49 on Wednesday. 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 company has a market capitalization of $2.10 billion, a P/E ratio of 18.43 and a beta of 0.91. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The stock has a 50 day moving average price of $62.31 and a 200-day moving average price of $68.01.

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

Insider Activity

In other news, major shareholder Paul P. Rusnak acquired 11,481 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were bought at an average price of $59.95 per share, with a total value of $688,285.95. Following the completion of the purchase, the insider directly owned 5,100,000 shares in the company, valued at $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 hyperlink. Insiders purchased a total of 100,000 shares of company stock valued at $5,994,472 in the last ninety days. 42.65% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its stake in shares of Sonic Automotive by 124.9% during the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock valued at $20,239,000 after buying an additional 197,336 shares during the period. Bridgeway Capital Management LLC bought a new position in Sonic Automotive during the 4th quarter worth about $7,384,000. Qube Research & Technologies Ltd purchased a new position in Sonic Automotive during the 3rd quarter valued at about $7,450,000. Vanguard Group Inc. raised its holdings in shares of Sonic Automotive by 6.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock valued at $125,278,000 after purchasing an additional 96,836 shares in the last quarter. Finally, ProShare Advisors LLC bought a new stake in shares of Sonic Automotive in the 2nd quarter valued at about $6,564,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

About Sonic Automotive

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.