Sonic Automotive (NYSE:SAH) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Sonic Automotive from “hold” to “strong sell,” while broader analyst sentiment remains “hold” with a consensus price target of $90.12.
• Sonic Automotive opened at $61.02, well below its 50-day and 200-day moving averages, and has traded between $54.11 and $113.67 over the past year.
• The company exceeded quarterly expectations, reporting $1.82 in earnings per share versus $1.75 expected and $3.93 billion in revenue, up 7.6% year over year. Major shareholder Paul P. Rusnak also purchased approximately $1.66 million of stock.

Sonic Automotive (NYSE:SAH - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday, Zacks reports.

Other research analysts also recently issued research reports about the company. Citigroup increased their price objective on Sonic Automotive from $95.00 to $115.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Stephens set a $89.00 target price on Sonic Automotive in a research note on Monday, July 13th. JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $72.00 to $64.00 and set an "underweight" rating for the company in a report on Tuesday, October 6th. Needham & Company LLC upped their price target on Sonic Automotive from $90.00 to $139.00 and gave the company a "buy" rating in a report on Friday, July 31st. Finally, Seaport Research Partners lowered shares of Sonic Automotive from a "buy" rating to a "neutral" rating and increased their price target for the company from $185.00 to $205.00 in a research note on Friday, July 17th. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Sonic Automotive presently has a consensus rating of "Hold" and a consensus target price of $90.12.

Sonic Automotive Stock Performance

NYSE:SAH opened at $61.02 on Monday. The firm has a market capitalization of $1.93 billion, a PE ratio of 9.73, a price-to-earnings-growth ratio of 0.99 and a beta of 0.92. The business's fifty day moving average price is $72.56 and its 200 day moving average price is $78.14. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. Sonic Automotive has a 12 month low of $54.11 and a 12 month high of $113.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, beating analysts' consensus estimates of $1.75 by $0.07. The company had revenue of $3.93 billion for the quarter, compared to analysts' expectations of $3.78 billion. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%. Sonic Automotive's quarterly revenue was up 7.6% on a year-over-year basis. During the same period last year, the firm earned $2.19 earnings per share. On average, sell-side analysts anticipate that Sonic Automotive will post 6.81 earnings per share for the current fiscal year.

Insider Transactions at Sonic Automotive

In related news, major shareholder Paul P. Rusnak acquired 27,756 shares of the firm's stock in a transaction on Monday, October 5th. The stock was bought at an average price of $59.76 per share, for a total transaction of $1,658,698.56. Following the completion of the purchase, the insider directly owned 5,149,401 shares of the company's stock, valued at approximately $307,728,203.76. The trade was a 0.54% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders have acquired a total of 64,221 shares of company stock valued at $3,832,650 in the last three months. Corporate insiders own 43.68% of the company's stock.

Institutional Trading of Sonic Automotive

Hedge funds and other institutional investors have recently made changes to their positions in the company. A&I Financial Services LLC raised its position in shares of Sonic Automotive by 0.9% in the second quarter. A&I Financial Services LLC now owns 11,755 shares of the company's stock valued at $997,000 after buying an additional 109 shares during the last quarter. CoreCap Advisors LLC boosted its position in Sonic Automotive by 15.5% during the third quarter. CoreCap Advisors LLC now owns 1,550 shares of the company's stock worth $94,000 after acquiring an additional 208 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in 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 acquiring an additional 582 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in Sonic Automotive in the 2nd quarter worth approximately $88,000. Finally, State of Wyoming purchased a new stake in Sonic Automotive in the 1st quarter worth approximately $79,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.