Sonic Automotive (NYSE:SAH) Stock Price Down 11.3% After Earnings Miss

Key Points

• Sonic Automotive's stock price dropped 11.3% after the company missed earnings expectations, reporting $1.41 EPS versus the consensus estimate of $1.76 EPS.
• The company's revenue increased by 13.8% year-over-year, while its net margin was 1.07% and return on equity stood at 21.40%.
• Analysts have mixed ratings on Sonic Automotive; while some have maintained a "buy" rating, others have downgraded it to "hold," reflecting a consensus target price of $83.71.

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) were down 11.3% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $66.70 and last traded at $69.02. Approximately 51,061 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 215,806 shares. The stock had previously closed at $77.84.

The company reported $1.41 EPS for the quarter, missing the consensus estimate of $1.76 by ($0.35). Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. Sonic Automotive's revenue was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.26 EPS.

Analyst Ratings Changes

A number of equities analysts have commented on SAH shares. Needham & Company LLC reissued a "buy" rating and issued a $95.00 price target on shares of Sonic Automotive in a research note on Thursday, October 2nd. Wall Street Zen cut shares of Sonic Automotive from a "buy" rating to a "hold" rating in a research note on Saturday, October 18th. Benchmark boosted their price target on shares of Sonic Automotive from $80.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, September 18th. Citigroup boosted their price target on shares of Sonic Automotive from $81.00 to $82.00 and gave the stock a "neutral" rating in a research note on Thursday, September 25th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Sonic Automotive from $74.00 to $76.00 and gave the stock an "underweight" rating in a research note on Tuesday, October 14th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Sonic Automotive has an average rating of "Moderate Buy" and a consensus target price of $83.71.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently made changes to their positions in the business. Teacher Retirement System of Texas raised its holdings in Sonic Automotive by 38.2% during the 1st quarter. Teacher Retirement System of Texas now owns 14,286 shares of the company's stock valued at $814,000 after buying an additional 3,952 shares during the last quarter. American Century Companies Inc. raised its holdings in Sonic Automotive by 23.0% during the 1st quarter. American Century Companies Inc. now owns 25,341 shares of the company's stock valued at $1,443,000 after buying an additional 4,745 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in Sonic Automotive during the 1st quarter valued at $1,940,000. Cetera Investment Advisers bought a new stake in Sonic Automotive during the 1st quarter valued at $218,000. Finally, Jump Financial LLC bought a new stake in Sonic Automotive during the 1st quarter valued at $777,000. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Stock Down 11.5%

The stock's fifty day moving average is $78.39 and its 200 day moving average is $74.03. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 1.78. The company has a market capitalization of $2.35 billion, a P/E ratio of 15.31 and a beta of 0.95.

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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