Sonic Automotive (NYSE:SAH) Trading Down 4% – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH)’s stock price was down 4% during mid-day trading on Thursday . The stock traded as low as $70.07 and last traded at $69.81. Approximately 78,804 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 275,168 shares. The stock had previously closed at $72.69.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. JPMorgan Chase & Co. cut their target price on Sonic Automotive from $76.00 to $72.00 and set an “underweight” rating for the company in a research note on Tuesday, August 4th. UBS Group upped their price objective on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a “buy” rating in a report on Friday, July 10th. Stephens set a $89.00 price objective on shares of Sonic Automotive in a research report on Monday, July 13th. 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. Finally, Citigroup boosted their target price on shares of Sonic Automotive from $95.00 to $115.00 and gave the company a “buy” rating in a report on Monday, August 3rd. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $98.88.

Sonic Automotive Price Performance

The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The company has a market cap of $2.01 billion, a PE ratio of 10.14, a P/E/G ratio of 1.06 and a beta of 0.86. The stock has a 50-day simple moving average of $84.74 and a 200 day simple moving average of $77.97.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.75 by $0.07. The business had revenue of $3.93 billion during the quarter, compared to analysts’ expectations of $3.78 billion. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The company’s revenue was up 7.6% compared to the same quarter last year. During the same period in the prior year, the business posted $2.19 EPS. Equities analysts expect that Sonic Automotive, Inc. will post 6.92 EPS for the current year.

Sonic Automotive Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Sonic Automotive’s dividend payout ratio (DPR) is 26.16%.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently made changes to their positions in the stock. A&I Financial Services LLC lifted its holdings in shares of Sonic Automotive by 0.9% in the 2nd quarter. A&I Financial Services LLC now owns 11,755 shares of the company’s stock worth $997,000 after acquiring an additional 109 shares during the last quarter. New Age Alpha Advisors LLC increased its holdings in Sonic Automotive by 1.6% in the 4th quarter. New Age Alpha Advisors LLC now owns 27,409 shares of the company’s stock valued at $1,696,000 after purchasing an additional 435 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Sonic Automotive by 14.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company’s stock valued at $390,000 after purchasing an additional 582 shares during the period. Ameritas Advisory Services LLC purchased a new stake in Sonic Automotive in the second quarter valued at approximately $88,000. Finally, State of Wyoming acquired a new position in Sonic Automotive during the first quarter worth $79,000. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an 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 replacement parts, vehicle maintenance and repair services, financing, insurance products and other related offerings.

Sonic also operates EchoPark Automotive, a retail platform focused primarily on high-quality pre-owned vehicles. Through its dealership and EchoPark operations, the company provides vehicle purchasing, trade-in, financing and service options to consumers.

Founded in 1997, Sonic Automotive serves customers through locations across the United States.