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

Zacks Research cut shares of Sonic Automotive (NYSE:SAH) from a hold rating to a strong sell rating in a research note issued to investors on Monday morning,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. Needham & Company LLC reissued a “buy” rating and set a $90.00 target price on shares of Sonic Automotive in a report on Thursday, February 19th. Citigroup raised shares of 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. Morgan Stanley set a $68.00 target price on shares of Sonic Automotive in a research report on Monday, December 8th. Wall Street Zen cut Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Finally, JPMorgan Chase & Co. dropped their price target on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research note on Friday, January 16th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $77.50.

Sonic Automotive Price Performance

SAH stock opened at $62.81 on Monday. The firm has a market cap of $2.11 billion, a price-to-earnings ratio of 18.53 and a beta of 0.91. Sonic Automotive has a 12-month low of $52.00 and a 12-month high of $89.62. The company’s fifty day simple moving average is $62.36 and its 200 day simple moving average is $68.08. The company has a quick ratio of 0.32, a current ratio of 1.09 and a debt-to-equity ratio of 1.80.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Wednesday, February 18th. The company reported $1.52 EPS for the quarter, missing the consensus estimate of $1.53 by ($0.01). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The firm had revenue of $3.87 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter in the prior year, the firm earned $1.51 EPS. The company’s revenue was down .6% compared to the same quarter last year. On average, analysts expect that Sonic Automotive will post 6.14 earnings per share for the current year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be issued a dividend of $0.38 per share. The ex-dividend date is Friday, March 13th. This represents a $1.52 annualized dividend and a dividend yield of 2.4%. Sonic Automotive’s dividend payout ratio (DPR) is presently 44.84%.

Insider Activity

In other news, major shareholder Paul P. Rusnak acquired 48,540 shares of Sonic Automotive stock in a transaction on Friday, February 13th. The stock was acquired at an average cost of $59.92 per share, for a total transaction of $2,908,516.80. Following the purchase, the insider owned 5,088,519 shares in the company, valued at $304,904,058.48. This trade represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last ninety days, insiders bought 100,000 shares of company stock valued at $5,994,472. 42.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

Institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. lifted its position in Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after acquiring an additional 397 shares in the last quarter. Camelot Portfolios LLC bought a new position in shares of Sonic Automotive during the fourth quarter valued at $41,000. Torren Management LLC bought a new position in shares of Sonic Automotive during the fourth quarter valued at $50,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of Sonic Automotive during the third quarter valued at $63,000. Finally, National Bank of Canada FI bought a new stake in Sonic Automotive in the 3rd quarter worth about $78,000. Hedge funds and other 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.