Sonic Automotive (NYSE:SAH) Given New $76.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. lowered its price target on Sonic Automotive to $76 from $77 and maintained an underweight rating, implying about 18.8% downside from the current price.
• Analyst sentiment remains mixed overall: Sonic Automotive has a consensus Hold rating with an average price target of $89, while recent calls ranged from bearish to bullish across major firms.
• The stock was trading down 1.0% at $93.62, and the company recently reported quarterly EPS of $1.62, beating estimates even as revenue came in slightly below expectations.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price objective reduced by equities research analysts at JPMorgan Chase & Co. from $77.00 to $76.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s target price points to a potential downside of 18.82% from the stock's current price.

A number of other research firms have also recently weighed in on SAH. Morgan Stanley set a $72.00 price objective on Sonic Automotive in a research report on Thursday, May 7th. Needham & Company LLC reiterated a "buy" rating and issued a $90.00 price target on shares of Sonic Automotive in a research note on Tuesday, March 31st. Barclays raised their price target on Sonic Automotive from $67.00 to $77.00 and gave the stock an "equal weight" rating in a report on Tuesday, May 5th. Bank of America upped their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the company a "buy" rating in a report on Thursday. Finally, Weiss Ratings cut shares of Sonic Automotive from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 7th. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $89.00.

Sonic Automotive Stock Down 1.0%

Shares of NYSE SAH traded down $0.92 during mid-day trading on Monday, reaching $93.62. 114,108 shares of the company were exchanged, compared to its average volume of 277,991. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $99.02. The firm has a 50-day moving average of $81.91 and a 200 day moving average of $70.21. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of 29.78, a P/E/G ratio of 1.45 and a beta of 0.89. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.22. The company had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The firm's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.48 earnings per share. On average, research analysts expect that Sonic Automotive will post 6.94 earnings per share for the current year.

Insider Activity at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the completion of the sale, the president owned 543,668 shares in the company, valued at approximately $46,331,386.96. This represents a 6.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 in the last ninety days. 43.68% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Sonic Automotive by 992.5% during the 2nd 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 period. Camelot Portfolios LLC purchased a new stake in shares of Sonic Automotive in the fourth quarter valued at about $41,000. Torren Management LLC acquired a new stake in Sonic Automotive during the fourth quarter worth about $50,000. National Bank of Canada FI purchased a new position in Sonic Automotive during the third quarter worth about $78,000. Finally, State of Wyoming acquired a new position in Sonic Automotive in the 1st quarter valued at about $79,000. 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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