Sonic Automotive (NYSE:SAH) Stock Price Down 5.5% – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH) shares traded down 5.5% during mid-day trading on Wednesday . The stock traded as low as $79.93 and last traded at $79.0290. 72,077 shares were traded during mid-day trading, a decline of 74% from the average session volume of 275,553 shares. The stock had previously closed at $83.65.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on SAH. JPMorgan Chase & Co. raised their target price on shares of Sonic Automotive from $67.00 to $77.00 and gave the stock an “underweight” rating in a research note on Thursday, May 7th. UBS Group assumed coverage on shares of Sonic Automotive in a research note on Wednesday, May 27th. They set a “buy” rating and a $90.00 price target on the stock. Barclays increased their price target on shares of Sonic Automotive from $67.00 to $77.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 5th. Bank of America assumed coverage on shares of Sonic Automotive in a research report on Wednesday, March 4th. They issued a “neutral” rating for the company. Finally, Morgan Stanley set a $72.00 price objective on Sonic Automotive in a report on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $81.62.

Sonic Automotive Trading Up 2.8%

The company has a market cap of $2.54 billion, a price-to-earnings ratio of 25.58, a P/E/G ratio of 1.79 and a beta of 0.88. The business has a fifty day simple moving average of $76.96 and a 200 day simple moving average of $67.90. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.22. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The business had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the prior year, the company posted $1.48 EPS. The business’s revenue for the quarter was up 1.0% on a year-over-year basis. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 6.92 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be given a dividend of $0.41 per share. The ex-dividend date is Monday, June 15th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 annualized dividend and a yield of 2.0%. Sonic Automotive’s dividend payout ratio (DPR) is currently 52.23%.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 50,000 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president directly owned 111,622 shares of the company’s stock, valued at approximately $9,261,277.34. This trade represents a 30.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 over the last three months. Company insiders own 43.68% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors and hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its holdings in Sonic Automotive by 992.5% during the second 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 last quarter. Camelot Portfolios LLC acquired a new stake in Sonic Automotive in the fourth quarter valued at $41,000. Torren Management LLC purchased a new position in shares of Sonic Automotive in the fourth quarter valued at $50,000. Aster Capital Management DIFC Ltd purchased a new position in shares of Sonic Automotive in the third quarter valued at $63,000. Finally, National Bank of Canada FI acquired a new position in shares of Sonic Automotive during the 3rd quarter worth $78,000. Institutional investors and hedge funds 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.