Sonic Automotive (NYSE:SAH) Shares Gap Down - Time to Sell?

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $85.17, but opened at $82.47. Sonic Automotive shares last traded at $77.20, with a volume of 100,105 shares traded.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Bank of America lifted their price objective on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Stephens lowered shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and boosted their target price for the company from $72.00 to $82.00 in a research note on Thursday. Citigroup started coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 price objective for the company. Wall Street Zen cut shares of Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, Benchmark assumed coverage on shares of Sonic Automotive in a research report on Wednesday, May 28th. They set a "buy" rating and a $76.00 price target for the company. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $74.29.

Sonic Automotive Price Performance

The firm has a market cap of $2.64 billion, a price-to-earnings ratio of 11.10 and a beta of 1.04. The company has a quick ratio of 0.38, a current ratio of 1.09 and a debt-to-equity ratio of 1.67. The company's 50-day moving average price is $76.55 and its 200-day moving average price is $69.04.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, April 24th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.46 by $0.02. The company had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.47 billion. Sonic Automotive had a net margin of 1.69% and a return on equity of 19.42%. The firm's revenue was up 7.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.36 earnings per share. On average, equities research analysts forecast that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Friday, June 13th were given a $0.35 dividend. The ex-dividend date of this dividend was Friday, June 13th. This represents a $1.40 dividend on an annualized basis and a yield of 1.80%. Sonic Automotive's dividend payout ratio (DPR) is 19.94%.

Insider Buying and Selling

In other Sonic Automotive news, President Jeff Dyke sold 576 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $70.02, for a total value of $40,331.52. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 50,000 shares of company stock valued at $3,502,062 over the last three months. 42.65% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SAH. Canada Pension Plan Investment Board acquired a new position in shares of Sonic Automotive during the 4th quarter worth $51,000. Quarry LP acquired a new position in Sonic Automotive in the 1st quarter valued at about $84,000. Aster Capital Management DIFC Ltd raised its stake in Sonic Automotive by 1,429.7% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company's stock valued at $98,000 after purchasing an additional 1,444 shares during the last quarter. KLP Kapitalforvaltning AS acquired a new position in Sonic Automotive in the 4th quarter valued at about $185,000. Finally, Cetera Investment Advisers acquired a new position in Sonic Automotive in the 1st quarter valued at about $218,000. Institutional investors and hedge funds 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.