JPMorgan Chase & Co. Increases Sonic Automotive (NYSE:SAH) Price Target to $77.00

Key Points

• JPMorgan raised its price target on Sonic Automotive from $67 to $77 but kept an "underweight" rating, implying roughly a 3.9% downside from the current share price.
• Analyst consensus is a Hold with an average target of $80.50 (3 buys, 6 holds, 1 sell), though other firms range from $67 up to a $90 target from Needham.
• Sonic beat EPS estimates ($1.62 vs. $1.40) while revenue was slightly below expectations, and major shareholder Paul P. Rusnak recently bought 48,540 shares, leaving insiders with about 43.7% ownership.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target upped by equities research analysts at JPMorgan Chase & Co. from $67.00 to $77.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential downside of 3.88% from the company's current price.

A number of other equities analysts have also commented on the stock. Needham & Company LLC reissued a "buy" rating and issued a $90.00 price target on shares of Sonic Automotive in a report on Tuesday, March 31st. Bank of America started coverage on shares of Sonic Automotive in a report on Wednesday, March 4th. They issued a "neutral" rating on the stock. Barclays increased their price target on shares of Sonic Automotive from $67.00 to $77.00 and gave the stock an "equal weight" rating in a report on Tuesday. Wall Street Zen lowered shares of Sonic Automotive from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. Finally, Stephens decreased their price target on shares of Sonic Automotive from $68.00 to $67.00 and set an "equal weight" rating on the stock in a report on Thursday, February 19th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $80.50.

Sonic Automotive Price Performance

Sonic Automotive stock traded up $1.11 during midday trading on Thursday, reaching $80.11. 207,931 shares of the stock were exchanged, compared to its average volume of 277,336. The company's fifty day moving average is $66.11 and its 200-day moving average is $64.38. The firm has a market cap of $2.69 billion, a PE ratio of 25.51, a PEG ratio of 1.71 and a beta of 0.89. Sonic Automotive has a 52 week low of $54.11 and a 52 week high of $89.62. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.40 by $0.22. The firm had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.48 EPS. On average, sell-side analysts forecast that Sonic Automotive will post 6.64 EPS for the current year.

Insider Activity at Sonic Automotive

In other news, major shareholder Paul P. Rusnak purchased 48,540 shares of the company's stock in a transaction on Friday, February 13th. The stock was acquired at an average price of $59.92 per share, with a total value of $2,908,516.80. Following the transaction, the insider directly owned 5,088,519 shares of the company's stock, valued at approximately $304,904,058.48. This represents a 0.96% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last 90 days, insiders have acquired 81,262 shares of company stock worth $4,870,567. 43.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sonic Automotive

Institutional investors have recently added to or reduced their stakes in the company. Y Intercept Hong Kong Ltd purchased a new stake in Sonic Automotive during the 3rd quarter valued at $647,000. Jackson Creek Investment Advisors LLC lifted its position in shares of Sonic Automotive by 311.2% in the 3rd quarter. Jackson Creek Investment Advisors LLC now owns 23,571 shares of the company's stock worth $1,794,000 after purchasing an additional 17,839 shares during the period. Vanguard Group Inc. boosted its stake in shares of Sonic Automotive by 6.2% during the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company's stock valued at $125,278,000 after purchasing an additional 96,836 shares in the last quarter. Public Sector Pension Investment Board boosted its stake in shares of Sonic Automotive by 39.5% during the 3rd quarter. Public Sector Pension Investment Board now owns 68,842 shares of the company's stock valued at $5,238,000 after purchasing an additional 19,483 shares in the last quarter. Finally, Tudor Investment Corp ET AL increased its position in shares of Sonic Automotive by 41.2% during the third quarter. Tudor Investment Corp ET AL now owns 183,522 shares of the company's stock valued at $13,964,000 after buying an additional 53,510 shares during the period. Hedge funds and other institutional investors own 46.92% of the company's stock.

About Sonic Automotive

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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