Sonic Automotive (NYSE:SAH) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Sonic Automotive has been upgraded to a "strong-buy" rating by Zacks Research, indicating a positive outlook for the stock.
• The company reported earnings of $2.19 per share for the last quarter, surpassing the consensus estimate of $1.63, showing a 5.9% revenue increase year-over-year.
• Currently, Sonic Automotive has a consensus target price of $80.57, supported by multiple analysts who have varying ratings, including "buy" and "hold".

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

SAH has been the topic of several other reports. Needham & Company LLC restated a "buy" rating and set a $95.00 target price on shares of Sonic Automotive in a report on Wednesday, August 6th. Bank of America raised their price target on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Wall Street Zen downgraded Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. Stephens downgraded Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their price target for the company from $72.00 to $82.00 in a research report on Thursday, July 17th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $72.00 price target (up from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Sonic Automotive has a consensus rating of "Moderate Buy" and a consensus target price of $80.57.

Sonic Automotive Price Performance

NYSE SAH opened at $78.54 on Tuesday. Sonic Automotive has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The stock's 50-day moving average is $78.63 and its two-hundred day moving average is $72.00. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24. The firm has a market cap of $2.68 billion, a P/E ratio of 17.45 and a beta of 0.98.

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

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently added to or reduced their stakes in the company. Texas Permanent School Fund Corp grew its position in Sonic Automotive by 13.8% during the second quarter. Texas Permanent School Fund Corp now owns 14,316 shares of the company's stock worth $1,144,000 after buying an additional 1,732 shares in the last quarter. Public Sector Pension Investment Board grew its position in Sonic Automotive by 6.5% during the second quarter. Public Sector Pension Investment Board now owns 49,359 shares of the company's stock worth $3,945,000 after buying an additional 3,024 shares in the last quarter. Tower Research Capital LLC TRC grew its position in Sonic Automotive by 578.4% during the second quarter. Tower Research Capital LLC TRC now owns 9,003 shares of the company's stock worth $720,000 after buying an additional 7,676 shares in the last quarter. Corient Private Wealth LLC grew its position in Sonic Automotive by 98.5% during the second quarter. Corient Private Wealth LLC now owns 12,282 shares of the company's stock worth $982,000 after buying an additional 6,094 shares in the last quarter. Finally, Man Group plc grew its position in Sonic Automotive by 22.4% during the second quarter. Man Group plc now owns 18,032 shares of the company's stock worth $1,441,000 after buying an additional 3,300 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 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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