Sonic Automotive (NYSE:SAH) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Sonic Automotive (SAH) from "strong sell" to "hold"; the stock's consensus rating remains a Hold with an average price target of $77.50 (3 Buy, 6 Hold, 1 Sell).
• Sonic missed quarterly estimates, reporting $1.62 EPS versus a $1.70 consensus, with a net margin of 0.78% and ROE of 21.54%; shares trade around $73.42 with a one‑year range of $54.11–$89.62.
• Insiders are active—major shareholder Paul P. Rusnak bought 11,481 shares and insiders own 43.68% of the company—while institutional investors hold about 46.92%, with Goldman Sachs notably increasing its stake.

Sonic Automotive (NYSE:SAH - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

SAH has been the subject of several other research reports. Bank of America initiated coverage on shares of Sonic Automotive in a research note on Wednesday, March 4th. They issued a "neutral" rating for the company. Wall Street Zen downgraded shares of Sonic Automotive from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. JPMorgan Chase & Co. increased their price target on shares of Sonic Automotive from $65.00 to $67.00 and gave the company an "underweight" rating in a report on Friday, April 17th. Stephens cut their price target on shares of Sonic Automotive from $68.00 to $67.00 and set an "equal weight" rating for the company in a report on Thursday, February 19th. Finally, Needham & Company LLC restated a "buy" rating and set a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Sonic Automotive has a consensus rating of "Hold" and an average price target of $77.50.

Sonic Automotive Price Performance

Shares of NYSE:SAH opened at $73.42 on Tuesday. Sonic Automotive has a one year low of $54.11 and a one year high of $89.62. The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of 21.66, a PEG ratio of 2.10 and a beta of 0.82. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.32 and a current ratio of 1.09. The company has a 50-day simple moving average of $65.25 and a 200-day simple moving average of $64.36.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, missing the consensus estimate of $1.70 by ($0.08). Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%. On average, analysts predict that Sonic Automotive will post 6.54 EPS for the current year.

Insider Activity at Sonic Automotive

In other news, major shareholder Paul P. Rusnak purchased 11,481 shares of the stock in a transaction dated Tuesday, February 17th. The stock was acquired at an average cost of $59.95 per share, for a total transaction of $688,285.95. Following the completion of the acquisition, the insider directly owned 5,100,000 shares in the company, valued at $305,745,000. This represents a 0.23% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have bought 100,000 shares of company stock worth $5,994,472 in the last ninety days. Insiders own 43.68% of the company's stock.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently modified their holdings of SAH. Goldman Sachs Group Inc. boosted its position in shares of Sonic Automotive by 124.9% in the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock worth $20,239,000 after acquiring an additional 197,336 shares during the last quarter. Bridgeway Capital Management LLC acquired a new position in shares of Sonic Automotive during the fourth quarter worth $7,384,000. Qube Research & Technologies Ltd acquired a new position in shares of Sonic Automotive during the third quarter worth $7,450,000. Vanguard Group Inc. lifted its position in shares of Sonic Automotive by 6.2% during the third quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company's stock worth $125,278,000 after purchasing an additional 96,836 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its position in shares of Sonic Automotive by 70.8% during the fourth quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company's stock worth $11,208,000 after purchasing an additional 75,125 shares in the last quarter. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Company Profile

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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