Sonic Automotive (NYSE:SAH) Given New $57.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut Sonic Automotive’s price target to $57 from $72 and maintained an “underweight” rating, implying approximately 9.36% downside from the stock’s reported $62.88 price.
• Analyst sentiment is mixed: four analysts rate the stock a Buy, four Hold, and two Sell, resulting in a consensus “Hold” rating and an average price target of $97.
• Sonic Automotive exceeded quarterly expectations with $1.82 in EPS versus the $1.75 consensus and revenue of $3.93 billion versus $3.78 billion expected; institutional investors own 46.92% of the company.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target dropped by Morgan Stanley from $72.00 to $57.00 in a research report issued on Monday, Marketbeat Ratings reports. The firm currently has an "underweight" rating on the stock. Morgan Stanley's price objective indicates a potential downside of 9.36% from the stock's current price.

Several other equities research analysts also recently weighed in on the company. Seaport Research Partners downgraded Sonic Automotive from a "buy" rating to a "neutral" rating and upped their target price for the stock from $185.00 to $205.00 in a research report on Friday, July 17th. Barclays dropped their target price on Sonic Automotive from $92.00 to $87.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 19th. Needham & Company LLC upped their price target on Sonic Automotive from $90.00 to $139.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Stephens set a $89.00 price objective on shares of Sonic Automotive in a research report on Monday, July 13th. Finally, Bank of America lifted their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $97.00.

Sonic Automotive Stock Performance

Shares of SAH stock opened at $62.88 on Monday. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88. The company has a market cap of $1.99 billion, a PE ratio of 10.03, a P/E/G ratio of 1.01 and a beta of 0.92. The company's fifty day simple moving average is $77.75 and its 200-day simple moving average is $78.19. Sonic Automotive has a 52 week low of $54.11 and a 52 week high of $113.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, topping analysts' consensus estimates of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The firm had revenue of $3.93 billion during the quarter, compared to analysts' expectations of $3.78 billion. During the same period in the prior year, the company earned $2.19 EPS. The firm's revenue was up 7.6% on a year-over-year basis. As a group, equities research analysts anticipate that Sonic Automotive will post 6.92 EPS for the current year.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Sonic Automotive during the 2nd quarter worth approximately $373,000. Ameritas Advisory Services LLC purchased a new position in shares of Sonic Automotive during the 2nd quarter valued at approximately $88,000. Northwestern Mutual Wealth Management Co. grew its position in shares of Sonic Automotive by 14.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company's stock worth $390,000 after buying an additional 582 shares in the last quarter. Denali Advisors LLC acquired a new stake in shares of Sonic Automotive during the second quarter worth approximately $4,799,000. Finally, Hsbc Holdings PLC increased its stake in shares of Sonic Automotive by 106.2% in the second quarter. Hsbc Holdings PLC now owns 27,871 shares of the company's stock worth $2,328,000 after buying an additional 14,352 shares during the last quarter. Institutional investors and hedge funds own 46.92% of the company's stock.

About Sonic Automotive

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.

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