Sonic Automotive (NYSE:SAH) Rating Lowered to "Buy" at Wall Street Zen

Wall Street Zen downgraded shares of Sonic Automotive (NYSE:SAH - Free Report) from a strong-buy rating to a buy rating in a report released on Saturday morning.

A number of other analysts have also recently weighed in on SAH. Benchmark started coverage on Sonic Automotive in a research note on Wednesday, May 28th. They issued a "buy" rating and a $76.00 price target on the stock. Bank of America raised their target price on Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating for the company in a report on Thursday, March 27th. 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 on the stock. Finally, Needham & Company LLC lowered their target price on shares of Sonic Automotive from $93.00 to $74.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Two analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Sonic Automotive presently has a consensus rating of "Moderate Buy" and an average price target of $74.71.

Sonic Automotive Stock Up 2.2%

NYSE:SAH traded up $1.73 during midday trading on Friday, reaching $81.96. The company had a trading volume of 135,523 shares, compared to its average volume of 194,546. Sonic Automotive has a 12-month low of $51.27 and a 12-month high of $82.44. The firm has a market capitalization of $2.78 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 0.69 and a beta of 1.02. The company has a current ratio of 1.09, a quick ratio of 0.38 and a debt-to-equity ratio of 1.67. The stock's fifty day simple moving average is $67.82 and its 200-day simple moving average is $66.48.

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

Sonic Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 15th. Shareholders of record on Friday, June 13th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.71%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive's payout ratio is currently 19.94%.

Insider Buying and Selling at Sonic Automotive

In other news, President Jeff Dyke sold 1,838 shares of the company's stock in a transaction that occurred on Thursday, May 29th. The stock was sold at an average price of $70.00, for a total transaction of $128,660.00. Following the completion of the sale, the president now owns 637,121 shares in the company, valued at $44,598,470. This represents a 0.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Over the last three months, insiders have sold 50,000 shares of company stock worth $3,502,062. 42.65% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sonic Automotive

Several institutional investors have recently bought and sold shares of SAH. New York State Teachers Retirement System boosted its holdings in shares of Sonic Automotive by 0.8% in the fourth quarter. New York State Teachers Retirement System now owns 25,935 shares of the company's stock valued at $1,643,000 after acquiring an additional 212 shares in the last quarter. Principal Financial Group Inc. increased its position in Sonic Automotive by 3.2% during the 4th quarter. Principal Financial Group Inc. now owns 71,051 shares of the company's stock worth $4,501,000 after purchasing an additional 2,212 shares during the period. New York State Common Retirement Fund lifted its holdings in shares of Sonic Automotive by 54.4% in the 4th quarter. New York State Common Retirement Fund now owns 45,000 shares of the company's stock valued at $2,851,000 after buying an additional 15,849 shares during the period. Denali Advisors LLC boosted its stake in shares of Sonic Automotive by 111.2% in the fourth quarter. Denali Advisors LLC now owns 87,100 shares of the company's stock valued at $5,518,000 after buying an additional 45,857 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in Sonic Automotive by 515.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock worth $30,000 after acquiring an additional 402 shares during the period. 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.