Sonic Automotive (NYSE:SAH) Raised to Equal Weight at Morgan Stanley

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

Several other research analysts have also commented on SAH. JPMorgan Chase & Co. raised their price objective on Sonic Automotive from $63.00 to $75.00 and gave the company an overweight rating in a research report on Tuesday, September 10th. Bank of America dropped their target price on Sonic Automotive from $68.00 to $67.00 and set a buy rating on the stock in a research report on Monday, July 22nd. Needham & Company LLC initiated coverage on Sonic Automotive in a research report on Tuesday, August 20th. They set a buy rating and a $73.00 target price on the stock. Finally, Stephens initiated coverage on Sonic Automotive in a research report on Thursday, September 12th. They set an equal weight rating and a $64.00 target price on the stock. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of Moderate Buy and an average target price of $66.50.

Sonic Automotive Trading Up 1.7 %

NYSE:SAH opened at $59.06 on Wednesday. The business’s 50-day moving average is $58.48 and its two-hundred day moving average is $56.32. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.10 and a quick ratio of 0.36. Sonic Automotive has a 12 month low of $41.19 and a 12 month high of $64.68. The firm has a market capitalization of $2.02 billion, a PE ratio of 12.10 and a beta of 1.61.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Monday, August 5th. The company reported $1.47 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 company had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.56 billion. During the same period last year, the company posted $1.83 earnings per share. The firm’s revenue was down 5.5% compared to the same quarter last year. Research analysts predict that Sonic Automotive will post 5.79 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Friday, September 13th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 2.03%. The ex-dividend date is Friday, September 13th. Sonic Automotive’s dividend payout ratio (DPR) is presently 24.59%.

Insider Buying and Selling at Sonic Automotive

In other news, CFO Heath Byrd sold 19,827 shares of Sonic Automotive stock in a transaction dated 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 completion of the transaction, the chief financial officer now directly owns 173,618 shares of the company’s stock, valued at approximately $10,417,080. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 40.95% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC acquired a new stake in Sonic Automotive in the first quarter worth $30,000. Innealta Capital LLC bought a new stake in Sonic Automotive in the 2nd quarter valued at about $41,000. AM Squared Ltd bought a new stake in Sonic Automotive in the 2nd quarter valued at about $82,000. TFO Wealth Partners LLC boosted its stake in Sonic Automotive by 35,366.7% during the 4th quarter. TFO Wealth Partners LLC now owns 2,128 shares of the company’s stock valued at $120,000 after purchasing an additional 2,122 shares during the period. Finally, Point72 DIFC Ltd grew its position in Sonic Automotive by 6.9% in the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after purchasing an additional 187 shares during the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.