Sonic Automotive (NYSE:SAH) Trading Down 3% – Should You Sell?

Sonic Automotive, Inc. (NYSE:SAH)’s share price traded down 3% on Monday . The company traded as low as $57.99 and last traded at $58.26. 47,133 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 195,623 shares. The stock had previously closed at $60.08.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SAH shares. StockNews.com cut Sonic Automotive from a “buy” rating to a “hold” rating in a report on Monday, March 24th. Needham & Company LLC decreased their price objective on Sonic Automotive from $100.00 to $93.00 and set a “buy” rating on the stock in a report on Wednesday, March 19th. Stephens upped their target price on shares of Sonic Automotive from $83.00 to $92.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Sonic Automotive from $80.00 to $65.00 and set an “overweight” rating on the stock in a research note on Thursday, March 27th. Two investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $74.80.

Sonic Automotive Price Performance

The company has a debt-to-equity ratio of 1.75, a current ratio of 1.09 and a quick ratio of 0.35. The stock’s fifty day moving average is $64.90 and its 200-day moving average is $64.11. The stock has a market cap of $1.95 billion, a PE ratio of 9.35 and a beta of 1.43.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Wednesday, February 12th. The company reported $1.51 earnings per share (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 analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Friday, March 14th will be given a $0.35 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.40 dividend on an annualized basis and a yield of 2.42%. Sonic Automotive’s dividend payout ratio is currently 22.65%.

Institutional Trading of Sonic Automotive

A number of hedge funds and other institutional investors have recently modified their holdings of SAH. Pacific Global Investment Management Co. lifted its position in Sonic Automotive by 4.1% in the fourth quarter. Pacific Global Investment Management Co. now owns 4,554 shares of the company’s stock valued at $288,000 after buying an additional 179 shares during the last quarter. New York State Teachers Retirement System raised its stake in shares of Sonic Automotive by 0.8% in the 4th quarter. New York State Teachers Retirement System now owns 25,935 shares of the company’s stock valued at $1,643,000 after acquiring an additional 212 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Sonic Automotive by 4.8% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,370 shares of the company’s stock worth $530,000 after acquiring an additional 380 shares during the last quarter. American Century Companies Inc. boosted its position in shares of Sonic Automotive by 1.9% during the 4th quarter. American Century Companies Inc. now owns 20,596 shares of the company’s stock worth $1,305,000 after purchasing an additional 390 shares during the period. Finally, Smartleaf Asset Management LLC increased its holdings in Sonic Automotive by 515.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the company’s stock valued at $30,000 after purchasing an additional 402 shares during the last quarter. 46.92% of the stock is owned by institutional investors and hedge funds.

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.