Sonic Automotive (NYSE:SAH) Lowered to “Hold” Rating by Zacks Research

Sonic Automotive (NYSE:SAH) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

Other analysts have also recently issued reports about the company. Stephens cut Sonic Automotive from an “overweight” rating to an “equal weight” rating and raised their target price for the stock from $72.00 to $82.00 in a research note on Thursday, July 17th. Morgan Stanley raised their target price on Sonic Automotive from $60.00 to $72.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 14th. Citigroup raised their target price on Sonic Automotive from $81.00 to $82.00 and gave the stock a “neutral” rating in a research note on Thursday, September 25th. Needham & Company LLC restated a “buy” rating and issued a $95.00 price objective on shares of Sonic Automotive in a report on Thursday, October 2nd. Finally, Wall Street Zen lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a report on Saturday, October 18th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $83.71.

Sonic Automotive Stock Down 15.8%

NYSE SAH opened at $65.50 on Wednesday. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24. The stock has a market capitalization of $2.24 billion, a PE ratio of 14.56 and a beta of 0.95. Sonic Automotive has a 1 year low of $52.00 and a 1 year high of $89.62. The business’s 50-day moving average is $78.11 and its 200 day moving average is $74.09.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, October 23rd. The company reported $1.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.82 by ($0.41). The business had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $3.59 billion. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The firm’s revenue for the quarter was up 13.8% compared to the same quarter last year. During the same period in the previous year, the business earned $1.26 earnings per share. Sell-side analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current year.

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently made changes to their positions in SAH. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares during the last quarter. Quarry LP purchased a new position in shares of Sonic Automotive during the first quarter valued at approximately $84,000. CoreCap Advisors LLC purchased a new position in shares of Sonic Automotive during the third quarter valued at approximately $109,000. Raymond James Financial Inc. purchased a new position in shares of Sonic Automotive during the second quarter valued at approximately $168,000. Finally, Entropy Technologies LP purchased a new position in shares of Sonic Automotive during the second quarter valued at approximately $208,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

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.