Sonic Automotive (NYSE:SAH) Price Target Raised to $72.00 at Morgan Stanley

Key Points

• Morgan Stanley raised the price target for Sonic Automotive from $60.00 to $72.00, indicating a potential downside of 9.75% from its current price.
• Sonic Automotive recently reported earnings of $2.19 per share, surpassing analysts' expectations of $1.63.
• Various analysts have issued mixed ratings on Sonic Automotive, with a current consensus rating of "Moderate Buy" and an average price target of $79.86.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target increased by research analysts at Morgan Stanley from $60.00 to $72.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price target would indicate a potential downside of 9.75% from the company's current price.

A number of other equities research analysts also recently weighed in on SAH. Stephens downgraded Sonic Automotive from an "overweight" rating to an "equal weight" rating and lifted their price objective for the company from $72.00 to $82.00 in a report on Thursday, July 17th. Citigroup initiated coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 target price on the stock. Needham & Company LLC restated a "buy" rating and issued a $95.00 target price on shares of Sonic Automotive in a research report on Wednesday, August 6th. Wall Street Zen lowered shares of Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. Finally, Benchmark lifted their price target on shares of Sonic Automotive from $76.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, July 25th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $79.86.

Sonic Automotive Stock Down 1.7%

Shares of NYSE SAH traded down $1.36 during midday trading on Thursday, reaching $79.78. 61,537 shares of the company's stock were exchanged, compared to its average volume of 229,192. Sonic Automotive has a 52-week low of $52.00 and a 52-week high of $89.62. The stock has a market capitalization of $2.72 billion, a PE ratio of 17.68 and a beta of 0.99. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.24 and a current ratio of 1.03. The business's fifty day moving average price is $78.84 and its two-hundred day moving average price is $70.08.

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

Insider Buying and Selling at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 576 shares of the firm's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $70.02, for a total transaction of $40,331.52. Following the transaction, the president owned 605,393 shares of the company's stock, valued at approximately $42,389,617.86. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 50,000 shares of company stock valued at $3,502,062 over the last quarter. Corporate insiders own 42.65% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SAH. Northwestern Mutual Wealth Management Co. grew its holdings in shares of 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 buying an additional 397 shares in the last quarter. Canada Pension Plan Investment Board purchased a new position in Sonic Automotive in the fourth quarter valued at approximately $51,000. Quarry LP acquired a new stake in shares of Sonic Automotive in the first quarter valued at approximately $84,000. Entropy Technologies LP acquired a new stake in shares of Sonic Automotive during the second quarter worth $208,000. Finally, Creative Planning acquired a new stake in Sonic Automotive in the second quarter valued at $213,000. Hedge funds and other institutional investors own 46.92% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.