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

Sonic Automotive, Inc. (NYSE:SAH) traded down 6.6% 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 traded 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 research analysts have also recently issued research reports about the stock. StockNews.com cut shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Monday, March 24th. Needham & Company LLC cut their price target 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. Finally, Stephens raised their price objective on shares of Sonic Automotive from $83.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, February 13th. Two investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Sonic Automotive has a consensus rating of “Moderate Buy” and a consensus price target of $74.80.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Phocas Financial Corp. increased its position in shares of Sonic Automotive by 86.6% during the fourth quarter. Phocas Financial Corp. now owns 116,343 shares of the company’s stock worth $7,370,000 after acquiring an additional 54,008 shares during the period. Denali Advisors LLC grew its position in shares of Sonic Automotive by 111.2% during the 4th quarter. Denali Advisors LLC now owns 87,100 shares of the company’s stock worth $5,518,000 after buying an additional 45,857 shares in the last quarter. Voloridge Investment Management LLC increased its stake in shares of Sonic Automotive by 110.9% during the fourth quarter. Voloridge Investment Management LLC now owns 69,766 shares of the company’s stock valued at $4,420,000 after buying an additional 36,691 shares during the period. HITE Hedge Asset Management LLC lifted its stake in Sonic Automotive by 105.2% in the fourth quarter. HITE Hedge Asset Management LLC now owns 58,526 shares of the company’s stock worth $3,708,000 after acquiring an additional 30,002 shares during the period. Finally, JPMorgan Chase & Co. grew its holdings in Sonic Automotive by 52.1% during the 4th quarter. JPMorgan Chase & Co. now owns 80,957 shares of the company’s stock worth $5,129,000 after acquiring an additional 27,726 shares in the last quarter. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive Stock Down 3.2 %

The company has a current ratio of 1.09, a quick ratio of 0.35 and a debt-to-equity ratio of 1.75. The firm has a market cap of $1.85 billion, a PE ratio of 8.89 and a beta of 1.70. The business’s 50-day simple moving average is $68.13 and its 200 day simple moving average is $63.89.

Sonic Automotive (NYSE:SAH) last issued 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 earnings per share for the current year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Friday, March 14th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.55%. The ex-dividend date of this dividend is Friday, March 14th. Sonic Automotive’s payout ratio is 22.65%.

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.