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

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

A number of other equities analysts also recently issued reports on SAH. Needham & Company LLC cut their target price on Sonic Automotive from $95.00 to $90.00 and set a “buy” rating for the company in a research note on Friday, October 24th. Benchmark increased their price objective on Sonic Automotive from $80.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, September 18th. Wall Street Zen lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Saturday, October 18th. Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target for the company in a report on Thursday, November 6th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Sonic Automotive from $76.00 to $70.00 and set an “underweight” rating for the company in a research note on Wednesday, November 5th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Sonic Automotive presently has an average rating of “Hold” and an average price target of $80.25.

Sonic Automotive Stock Performance

SAH traded up $0.67 during trading on Monday, hitting $65.61. The stock had a trading volume of 6,099 shares, compared to its average volume of 219,252. The firm has a market capitalization of $2.24 billion, a P/E ratio of 17.73 and a beta of 0.90. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.27 and a current ratio of 1.02. Sonic Automotive has a twelve month low of $52.00 and a twelve month high of $89.62. The company’s 50-day moving average price is $65.73 and its 200 day moving average price is $74.23.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Thursday, October 23rd. The company reported $1.41 earnings per share for the quarter, missing the consensus estimate of $1.82 by ($0.41). The firm had revenue of $3.97 billion during the quarter, compared to analysts’ expectations of $3.59 billion. Sonic Automotive had a net margin of 0.86% and a return on equity of 21.65%. The firm’s revenue was up 13.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.26 EPS. On average, equities research analysts forecast that Sonic Automotive will post 6.14 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 15th. Shareholders of record on Monday, December 15th will be given a dividend of $0.38 per share. The ex-dividend date is Monday, December 15th. This represents a $1.52 dividend on an annualized basis and a yield of 2.3%. Sonic Automotive’s payout ratio is presently 41.08%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Cetera Investment Advisers purchased a new position in Sonic Automotive during the first quarter worth $218,000. Deutsche Bank AG raised its stake in Sonic Automotive by 9.0% in the 1st quarter. Deutsche Bank AG now owns 26,304 shares of the company’s stock valued at $1,498,000 after purchasing an additional 2,165 shares during the last quarter. Nuveen LLC purchased a new position in Sonic Automotive in the 1st quarter valued at about $7,317,000. Public Sector Pension Investment Board grew its holdings in shares of Sonic Automotive by 26.7% during the first quarter. Public Sector Pension Investment Board now owns 46,335 shares of the company’s stock worth $2,639,000 after buying an additional 9,769 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in shares of Sonic Automotive by 2.0% during the first quarter. Russell Investments Group Ltd. now owns 22,581 shares of the company’s stock worth $1,286,000 after buying an additional 442 shares in the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

About Sonic Automotive

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. 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.