Sonic Automotive (NYSE:SAH) Price Target Lowered to $90.00 at Needham & Company LLC

Key Points

• Needham & Company LLC has reduced the price target for Sonic Automotive from $95.00 to $90.00, maintaining a "buy" rating, which suggests a potential upside of 37.40% based on the stock's last closing price.
• Sonic Automotive's most recent quarterly earnings report showed earnings per share (EPS) of $1.41, falling short of expectations by $0.41, but revenue was up 13.8% year-over-year.
• Currently, Sonic Automotive holds a consensus rating of "Hold" from analysts, with a target price average of $83.00.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target dropped by research analysts at Needham & Company LLC from $95.00 to $90.00 in a report released on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price objective would indicate a potential upside of 37.40% from the stock's previous close.

Other equities analysts also recently issued research reports about the stock. Citigroup increased their price target on shares of Sonic Automotive from $81.00 to $82.00 and gave the company a "neutral" rating in a report on Thursday, September 25th. Weiss Ratings restated a "hold (c)" rating on shares of Sonic Automotive in a report on Wednesday, October 8th. Morgan Stanley raised their target price on shares of Sonic Automotive from $60.00 to $72.00 and gave the company an "equal weight" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. raised their target price on shares of Sonic Automotive from $74.00 to $76.00 and gave the company an "underweight" rating in a report on Tuesday, October 14th. Finally, Wall Street Zen downgraded shares of Sonic Automotive from a "buy" rating to a "hold" rating in a report on Saturday, October 18th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $83.00.

Sonic Automotive Stock Performance

Shares of SAH opened at $65.50 on Friday. The company has a 50-day simple moving average of $78.11 and a 200-day simple moving average of $74.09. The company has a quick ratio of 0.24, a current ratio of 1.03 and a debt-to-equity ratio of 1.78. The company has a market capitalization of $2.24 billion, a PE ratio of 14.56 and a beta of 0.95. Sonic Automotive has a 52-week low of $52.00 and a 52-week high of $89.62.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, October 23rd. The company reported $1.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.82 by ($0.41). The company had revenue of $3.97 billion during the quarter, compared to analysts' expectations of $3.59 billion. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The business's revenue for the quarter was up 13.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.26 EPS. Equities research analysts predict that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently modified their holdings of SAH. Teacher Retirement System of Texas boosted its stake in shares of Sonic Automotive by 38.2% during the 1st quarter. Teacher Retirement System of Texas now owns 14,286 shares of the company's stock worth $814,000 after purchasing an additional 3,952 shares during the last quarter. Principal Financial Group Inc. boosted its stake in shares of Sonic Automotive by 2.6% during the 1st quarter. Principal Financial Group Inc. now owns 72,902 shares of the company's stock worth $4,152,000 after purchasing an additional 1,851 shares during the last quarter. Victory Capital Management Inc. boosted its stake in shares of Sonic Automotive by 50.5% during the 1st quarter. Victory Capital Management Inc. now owns 124,342 shares of the company's stock worth $7,083,000 after purchasing an additional 41,722 shares during the last quarter. Denali Advisors LLC boosted its stake in shares of Sonic Automotive by 2.0% during the 1st quarter. Denali Advisors LLC now owns 88,885 shares of the company's stock worth $5,063,000 after purchasing an additional 1,785 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Sonic Automotive during the 1st quarter worth about $1,940,000. 46.92% of the stock is owned by institutional investors and hedge funds.

About Sonic Automotive

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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