Sonic Automotive (NYSE:SAH) Trading Down 6.6% Following Analyst Downgrade

Sonic Automotive, Inc. (NYSE:SAH) traded down 6.6% during mid-day trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $80.00 to $65.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Sonic Automotive traded as low as $57.45 and last traded at $57.75. 22,530 shares changed hands during trading, a decline of 87% from the average session volume of 178,943 shares. The stock had previously closed at $61.83.

Other analysts have also issued reports about the stock. Needham & Company LLC reduced their price objective on shares of Sonic Automotive from $100.00 to $93.00 and set a “buy” rating on the stock in a report on Wednesday, March 19th. Stephens lifted their price objective on Sonic Automotive from $83.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, February 13th. Finally, StockNews.com cut Sonic Automotive from a “buy” rating to a “hold” rating in a report on Monday. Two equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Sonic Automotive presently has a consensus rating of “Moderate Buy” and an average target price of $74.80.

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently bought and sold shares of SAH. FMR LLC boosted its position in shares of Sonic Automotive by 15.0% during the 3rd quarter. FMR LLC now owns 52,259 shares of the company’s stock worth $3,056,000 after acquiring an additional 6,822 shares in the last quarter. Quantbot Technologies LP lifted its stake in Sonic Automotive by 667.6% during the third quarter. Quantbot Technologies LP now owns 12,113 shares of the company’s stock worth $708,000 after purchasing an additional 10,535 shares during the last quarter. Walleye Capital LLC boosted its holdings in Sonic Automotive by 245.6% in the third quarter. Walleye Capital LLC now owns 28,210 shares of the company’s stock valued at $1,650,000 after purchasing an additional 20,047 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. increased its stake in Sonic Automotive by 100.3% in the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 1,196 shares of the company’s stock valued at $70,000 after purchasing an additional 599 shares during the last quarter. Finally, HITE Hedge Asset Management LLC raised its holdings in Sonic Automotive by 49.0% during the third quarter. HITE Hedge Asset Management LLC now owns 28,524 shares of the company’s stock worth $1,668,000 after purchasing an additional 9,377 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive Stock Down 7.7 %

The firm’s 50-day moving average price is $68.40 and its two-hundred day moving average price is $63.90. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.35 and a current ratio of 1.09. The firm has a market cap of $1.93 billion, a PE ratio of 9.24 and a beta of 1.70.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Wednesday, February 12th. The company reported $1.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.46 by $0.05. Sonic Automotive had a net margin of 1.52% and a return on equity of 19.96%. As a group, equities research analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Friday, March 14th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.45%. The ex-dividend date is Friday, March 14th. Sonic Automotive’s dividend payout ratio (DPR) is 22.65%.

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.