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

Shares of Sonic Automotive, Inc. (NYSE:SAH – Get Rating) have been assigned an average recommendation of “Hold” from the four analysts that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $48.50.

A number of brokerages recently 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. upgraded Sonic Automotive from a “hold” rating to a “buy” rating in a research note on Friday. Morgan Stanley cut their price objective on shares of Sonic Automotive from $43.00 to $40.00 in a report on Friday, May 20th. Finally, Seaport Res Ptn downgraded shares of Sonic Automotive from a “buy” rating to a “neutral” rating in a report on Friday, April 29th.

In other Sonic Automotive news, major shareholder Paul P. Rusnak acquired 127,475 shares of the firm’s stock in a transaction on 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 purchase, the insider now directly owns 5,000,000 shares in the company, valued at $209,450,000. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 36.07% of the company’s stock.

Large investors have recently modified their holdings of the business. Wolverine Asset Management LLC increased its stake in Sonic Automotive by 81.3% during the 4th quarter. Wolverine Asset Management LLC now owns 27,975 shares of the company’s stock worth $1,383,000 after buying an additional 12,545 shares during the period. First Eagle Investment Management LLC increased its holdings in Sonic Automotive by 78.0% during the 4th quarter. First Eagle Investment Management LLC now owns 7,987 shares of the company’s stock worth $395,000 after purchasing an additional 3,500 shares during the last quarter. ETF Managers Group LLC purchased a new position in shares of Sonic Automotive during the 4th quarter valued at approximately $646,000. Quantedge Capital Pte Ltd acquired a new stake in shares of Sonic Automotive during the fourth quarter worth approximately $1,617,000. Finally, NorthCrest Asset Management LLC acquired a new stake in shares of Sonic Automotive during the fourth quarter worth approximately $878,000. 59.34% of the stock is owned by institutional investors.

Shares of NYSE SAH opened at $36.53 on Friday. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.10 and a quick ratio of 0.46. The firm’s 50-day moving average is $44.11 and its two-hundred day moving average is $46.98. Sonic Automotive has a 12-month low of $34.28 and a 12-month high of $58.00. The company has a market capitalization of $1.45 billion, a PE ratio of 3.99 and a beta of 2.05.

Sonic Automotive (NYSE:SAH – Get Rating) last posted its earnings results on Thursday, April 28th. The company reported $2.33 earnings per share (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 analysts’ expectations of $3.70 billion. During the same period in the previous year, the company posted $1.23 EPS. Sonic Automotive’s quarterly revenue was up 28.7% compared to the same quarter last year. On average, analysts forecast that Sonic Automotive will post 10.13 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, July 15th. Stockholders of record on Wednesday, June 15th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.74%. The ex-dividend date of this dividend is Tuesday, June 14th. Sonic Automotive’s payout ratio is currently 10.92%.

Sonic Automotive Company Profile (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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