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

Sonic Automotive, Inc. (NYSE:SAH)’s stock price dropped 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. Approximately 22,530 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 178,943 shares. The stock had previously closed at $61.83.

Several other brokerages also recently weighed in on SAH. StockNews.com downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Monday. Stephens boosted their price target on Sonic Automotive from $83.00 to $92.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Finally, Needham & Company LLC dropped their price target on shares of Sonic Automotive from $100.00 to $93.00 and set a “buy” rating on the stock in a research note on Wednesday, March 19th. Two research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Sonic Automotive currently has a consensus rating of “Moderate Buy” and an average price target of $74.80.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Phocas Financial Corp. boosted its holdings in Sonic Automotive by 86.6% in the 4th quarter. Phocas Financial Corp. now owns 116,343 shares of the company’s stock valued at $7,370,000 after purchasing an additional 54,008 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Sonic Automotive by 6.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 33,412 shares of the company’s stock worth $2,117,000 after acquiring an additional 1,911 shares during the last quarter. Voloridge Investment Management LLC boosted its stake in Sonic Automotive by 110.9% in the 4th quarter. Voloridge Investment Management LLC now owns 69,766 shares of the company’s stock worth $4,420,000 after buying an additional 36,691 shares during the last quarter. Squarepoint Ops LLC grew its holdings in Sonic Automotive by 93.1% in the fourth quarter. Squarepoint Ops LLC now owns 20,010 shares of the company’s stock valued at $1,268,000 after purchasing an additional 9,646 shares during the period. Finally, Wexford Capital LP purchased a new position in shares of Sonic Automotive in the 4th quarter worth $465,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Trading Down 6.2 %

The company has a market capitalization of $1.96 billion, a PE ratio of 9.38 and a beta of 1.70. The company has a quick ratio of 0.35, a current ratio of 1.09 and a debt-to-equity ratio of 1.75. The firm’s 50 day simple moving average is $68.62 and its 200-day simple moving average is $63.95.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Wednesday, February 12th. The company reported $1.51 EPS for the quarter, topping analysts’ consensus estimates 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 anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Investors of record on Friday, March 14th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date of this dividend is Friday, March 14th. Sonic Automotive’s dividend payout ratio is currently 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.