Sonic Automotive (NYSE:SAH) Downgraded to Strong Sell Rating by Zacks Research

Sonic Automotive (NYSE:SAH) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other analysts have also recently weighed in on the stock. Morgan Stanley set a $68.00 price objective on shares of Sonic Automotive in a research note on Monday, December 8th. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price on the stock in a report on Thursday, November 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sonic Automotive in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their price objective on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research note on Friday, January 16th. Finally, Barclays set a $67.00 target price on Sonic Automotive in a report on Monday, February 23rd. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Sonic Automotive has an average rating of “Hold” and a consensus price target of $77.50.

Sonic Automotive Stock Up 2.2%

NYSE SAH opened at $62.81 on Monday. The stock’s 50 day moving average is $62.36 and its two-hundred day moving average is $68.08. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80. The company has a market capitalization of $2.11 billion, a price-to-earnings ratio of 18.53 and a beta of 0.91. Sonic Automotive has a 1-year low of $52.00 and a 1-year high of $89.62.

Sonic Automotive (NYSE:SAH) last announced its quarterly 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). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The company had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter last year, the company earned $1.51 earnings per share. The business’s revenue was down .6% on a year-over-year basis. Equities analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 48,540 shares of Sonic Automotive stock in a transaction dated Friday, February 13th. The shares were bought at an average price of $59.92 per share, with a total value of $2,908,516.80. Following the purchase, the insider owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. This trade represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. In the last 90 days, insiders have bought 100,000 shares of company stock worth $5,994,472. Corporate insiders own 42.65% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. grew its holdings in Sonic Automotive by 124.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after acquiring an additional 197,336 shares during the period. Bridgeway Capital Management LLC bought a new position in shares of Sonic Automotive in the 4th quarter worth $7,384,000. Qube Research & Technologies Ltd acquired a new stake in shares of Sonic Automotive during the third quarter worth $7,450,000. Vanguard Group Inc. increased its holdings in Sonic Automotive by 6.2% in the third 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 during the last quarter. Finally, ProShare Advisors LLC bought a new stake in Sonic Automotive in the second quarter valued at about $6,564,000. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.