JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Sonic Automotive (NYSE:SAH) Stock

Key Points

• JPMorgan Chase & Co. has raised its price target for Sonic Automotive (NYSE:SAH) from $74.00 to $76.00, indicating a potential upside of 5.57% from the stock's previous close, despite maintaining an "underweight" rating.
• Other analysts have varied ratings and price targets, with Citigroup setting a target of $82.00 with a "neutral" rating and Zacks Research upgrading Sonic Automotive to a "strong-buy" rating.
• Following the latest quarterly earnings report, Sonic Automotive saw a 1.8% increase in stock price, beating earnings estimates and reporting a revenue of $3.66 billion, up 5.9% from the previous year.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target boosted by stock analysts at JPMorgan Chase & Co. from $74.00 to $76.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 5.57% from the stock's previous close.

Several other research firms have also recently issued reports on SAH. Citigroup lifted their price objective on Sonic Automotive from $81.00 to $82.00 and gave the stock a "neutral" rating in a report on Thursday, September 25th. Zacks Research raised Sonic Automotive from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, September 23rd. Weiss Ratings reiterated a "hold (c)" rating on shares of Sonic Automotive in a research report on Wednesday, October 8th. Stephens lowered Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their price objective for the company from $72.00 to $82.00 in a report on Thursday, July 17th. Finally, Benchmark upped their target price on shares of Sonic Automotive from $80.00 to $85.00 and gave the stock a "buy" rating in a report on Thursday, September 18th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $83.71.

Sonic Automotive Stock Up 1.8%

SAH stock opened at $71.99 on Tuesday. The firm's fifty day moving average is $78.34 and its 200 day moving average is $73.35. The firm has a market cap of $2.46 billion, a PE ratio of 16.00 and a beta of 0.95. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.24 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The company reported $2.19 earnings per share for the quarter, beating the consensus estimate of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The firm had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.66 billion. During the same quarter in the previous year, the business earned $1.47 EPS. Sonic Automotive's revenue for the quarter was up 5.9% compared to the same quarter last year. On average, research analysts forecast that Sonic Automotive will post 6.14 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SAH. Northwestern Mutual Wealth Management Co. increased its stake 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 acquiring an additional 397 shares during the last quarter. Quarry LP acquired a new stake in shares of Sonic Automotive during the 1st quarter worth about $84,000. Raymond James Financial Inc. purchased a new stake in Sonic Automotive in the 2nd quarter valued at about $168,000. Entropy Technologies LP acquired a new position in Sonic Automotive in the second quarter valued at about $208,000. Finally, Creative Planning purchased a new position in Sonic Automotive during the second quarter worth about $213,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

Sonic Automotive Company Profile

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.

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