Sonic Automotive (NYSE:SAH) Upgraded by Morgan Stanley to “Equal Weight”

Morgan Stanley upgraded shares of Sonic Automotive (NYSE:SAH) from an underweight rating to an equal weight rating in a research report report published on Wednesday, Marketbeat.com reports. Morgan Stanley currently has $58.00 price target on the stock, up from their previous price target of $40.00.

Other equities analysts have also recently issued research reports about the stock. Bank of America decreased their price target on shares of Sonic Automotive from $68.00 to $67.00 and set a buy rating for the company in a research report on Monday, July 22nd. Needham & Company LLC assumed coverage on Sonic Automotive in a research note on Tuesday, August 20th. They set a buy rating and a $73.00 target price for the company. Stephens initiated coverage on Sonic Automotive in a report on Thursday, September 12th. They set an equal weight rating and a $64.00 price target on the stock. Finally, JPMorgan Chase & Co. lifted their price objective on Sonic Automotive from $63.00 to $75.00 and gave the company an overweight rating in a research note on Tuesday, September 10th. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Sonic Automotive has a consensus rating of Moderate Buy and a consensus target price of $66.50.

Sonic Automotive Stock Performance

Shares of SAH stock opened at $57.10 on Wednesday. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.36 and a current ratio of 1.10. The firm has a market cap of $1.94 billion, a P/E ratio of 11.70 and a beta of 1.61. The firm’s 50 day moving average price is $58.44 and its 200-day moving average price is $56.26. Sonic Automotive has a one year low of $41.19 and a one year high of $64.68.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Monday, August 5th. The company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.38 by $0.09. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm had revenue of $3.45 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the previous year, the business earned $1.83 EPS. The company’s quarterly revenue was down 5.5% compared to the same quarter last year. As a group, equities research analysts predict that Sonic Automotive will post 5.79 EPS for the current year.

Sonic Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Friday, September 13th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.10%. The ex-dividend date of this dividend is Friday, September 13th. Sonic Automotive’s dividend payout ratio (DPR) is presently 24.59%.

Insider Buying and Selling

In other Sonic Automotive news, CFO Heath Byrd sold 19,827 shares of the stock in a transaction that occurred on Thursday, July 18th. The shares were sold at an average price of $60.00, for a total value of $1,189,620.00. Following the transaction, the chief financial officer now directly owns 173,618 shares in the company, valued at $10,417,080. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 40.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently bought and sold shares of SAH. Westwood Holdings Group Inc. purchased a new stake in shares of Sonic Automotive in the 4th quarter valued at about $31,473,000. Victory Capital Management Inc. lifted its stake in Sonic Automotive by 524.4% in the second quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock valued at $5,480,000 after buying an additional 84,489 shares during the last quarter. Squarepoint Ops LLC lifted its stake in Sonic Automotive by 679.8% in the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock valued at $5,175,000 after buying an additional 82,823 shares during the last quarter. Marshall Wace LLP grew its position in shares of Sonic Automotive by 831.1% during the second quarter. Marshall Wace LLP now owns 35,969 shares of the company’s stock worth $1,959,000 after acquiring an additional 32,106 shares during the last quarter. Finally, Quadrature Capital Ltd acquired a new position in shares of Sonic Automotive in the 4th quarter valued at $1,724,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.