Sonic Automotive (NYSE:SAH) Stock Price Target Cut by JPMorgan Chase & Co.

Key Points

• JPMorgan cut Sonic Automotive’s price target from $72 to $64 and maintained an “underweight” rating, implying roughly 4.66% upside from the stock’s $61.15 price.
• Analyst views remain mixed: four analysts rate the stock a Buy, four Hold, and two Sell, producing a consensus “Hold” rating and an average price target of $94.50.
• Sonic Automotive exceeded quarterly expectations, reporting $1.82 in EPS versus $1.75 expected and $3.93 billion in revenue, up 7.6% year over year; major shareholder Paul Rusnak also purchased about $1.29 million of shares.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price objective dropped by research analysts at JPMorgan Chase & Co. from $72.00 to $64.00 in a report issued on Tuesday, Benzinga reports. The brokerage presently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 4.66% from the company's current price.

A number of other brokerages have also recently issued reports on SAH. Needham & Company LLC boosted their target price on shares of Sonic Automotive from $90.00 to $139.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Citigroup lifted their price objective on shares of Sonic Automotive from $95.00 to $115.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. Morgan Stanley decreased their target price on shares of Sonic Automotive from $72.00 to $57.00 and set an "underweight" rating on the stock in a research report on Monday. Barclays dropped their price target on shares of Sonic Automotive from $87.00 to $75.00 and set an "equal weight" rating for the company in a research report on Tuesday. Finally, Seaport Research Partners downgraded Sonic Automotive from a "buy" rating to a "neutral" rating and increased their price target for the stock from $185.00 to $205.00 in a research report on Friday, July 17th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $94.50.

Sonic Automotive Stock Performance

SAH stock traded down $1.48 during mid-day trading on Tuesday, hitting $61.15. 179,531 shares of the company were exchanged, compared to its average volume of 286,899. Sonic Automotive has a 1-year low of $54.11 and a 1-year high of $113.67. The stock has a market capitalization of $1.93 billion, a PE ratio of 9.74, a price-to-earnings-growth ratio of 1.01 and a beta of 0.92. The business has a 50 day simple moving average of $76.95 and a 200-day simple moving average of $78.21. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its 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. The company had revenue of $3.93 billion for the quarter, compared to analyst estimates of $3.78 billion. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The firm's quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.19 earnings per share. On average, equities analysts forecast that Sonic Automotive will post 6.92 earnings per share for the current year.

Insider Buying and Selling

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 21,645 shares of the business's stock in a transaction on Thursday, October 1st. The stock was purchased at an average cost of $59.50 per share, for a total transaction of $1,287,877.50. Following the completion of the purchase, the insider directly owned 5,121,645 shares of the company's stock, valued at approximately $304,737,877.50. This trade represents a 0.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 43.68% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP grew its position in Sonic Automotive by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company's stock valued at $90,088,000 after acquiring an additional 48,599 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Sonic Automotive by 64.4% during the first quarter. Empowered Funds LLC now owns 131,302 shares of the company's stock worth $9,003,000 after buying an additional 51,420 shares during the last quarter. Heartland Advisors Inc. acquired a new position in Sonic Automotive in the 1st quarter worth about $8,450,000. Renaissance Technologies LLC raised its position in Sonic Automotive by 11.5% in the first quarter. Renaissance Technologies LLC now owns 88,126 shares of the company's stock valued at $6,043,000 after purchasing an additional 9,100 shares during the last quarter. Finally, Denali Advisors LLC acquired a new stake in shares of Sonic Automotive during the second quarter valued at about $4,799,000. 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.

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