JPMorgan Chase & Co. Has Lowered Expectations for Sonic Automotive (NYSE:SAH) Stock Price

Sonic Automotive (NYSE:SAH) had its target price reduced by JPMorgan Chase & Co. from $70.00 to $67.00 in a report released on Friday,Benzinga reports. The brokerage currently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 6.00% from the stock’s previous close.

A number of other equities research analysts have also weighed in on SAH. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a research report on Monday, December 29th. Wall Street Zen lowered Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Needham & Company LLC lowered their target price on shares of Sonic Automotive from $95.00 to $90.00 and set a “buy” rating for the company in a research note on Friday, October 24th. Barclays assumed coverage on shares of Sonic Automotive in a research report on Tuesday, November 11th. They set an “equal weight” rating and a $71.00 price target on the stock. Finally, Citigroup upgraded Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a report on Thursday, November 6th. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Sonic Automotive currently has an average rating of “Hold” and a consensus target price of $79.88.

Sonic Automotive Price Performance

SAH traded down $1.15 on Friday, hitting $63.21. 17,521 shares of the stock were exchanged, compared to its average volume of 149,673. The firm has a market capitalization of $2.16 billion, a price-to-earnings ratio of 17.08 and a beta of 0.92. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27. Sonic Automotive has a 12 month low of $52.00 and a 12 month high of $89.62. The business has a 50-day moving average of $63.46 and a two-hundred day moving average of $72.31.

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

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares during the period. Aster Capital Management DIFC Ltd purchased a new stake in Sonic Automotive in the third quarter worth $63,000. National Bank of Canada FI bought a new stake in shares of Sonic Automotive in the third quarter valued at $78,000. CoreCap Advisors LLC purchased a new position in shares of Sonic Automotive during the 3rd quarter valued at $109,000. Finally, Raymond James Financial Inc. bought a new position in shares of Sonic Automotive during the 2nd quarter worth $168,000. Institutional investors own 46.92% of the company’s stock.

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.