Sonic Automotive (NYSE:SAH) Upgraded 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 note published on Wednesday, Marketbeat reports. They currently have $58.00 price target on the stock, up from their prior price target of $40.00.

Several other analysts have also weighed in on the company. Stephens began coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an equal weight rating and a $64.00 price objective for the company. Bank of America lowered their price target on Sonic Automotive from $68.00 to $67.00 and set a buy rating for the company in a report on Monday, July 22nd. Needham & Company LLC began coverage on shares of Sonic Automotive in a research note on Tuesday, August 20th. They set a buy rating and a $73.00 target price for the company. Finally, JPMorgan Chase & Co. raised their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an overweight rating in a research report on Tuesday, September 10th. 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 MarketBeat.com, the stock presently has an average rating of Moderate Buy and a consensus price target of $66.50.

Sonic Automotive Stock Up 1.7 %

SAH stock opened at $59.06 on Wednesday. The company has a current ratio of 1.10, a quick ratio of 0.36 and a debt-to-equity ratio of 2.04. The firm has a 50 day simple moving average of $58.48 and a 200-day simple moving average of $56.35. The company has a market capitalization of $2.02 billion, a P/E ratio of 12.10 and a beta of 1.61. Sonic Automotive has a twelve month low of $41.19 and a twelve month high of $64.68.

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

Sonic Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders 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 of this dividend is Friday, September 13th. Sonic Automotive’s payout ratio is currently 24.59%.

Insiders Place Their Bets

In related news, CFO Heath Byrd sold 19,827 shares of the firm’s stock in a transaction that occurred on Thursday, July 18th. The shares were sold at an average price of $60.00, for a total transaction of $1,189,620.00. Following the completion of the sale, 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 available at this link. 40.95% of the stock is owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

Several institutional investors have recently made changes to their positions in SAH. Allspring Global Investments Holdings LLC acquired a new position in shares of Sonic Automotive during the 1st quarter valued at about $30,000. Innealta Capital LLC bought a new position in Sonic Automotive during the second quarter worth $41,000. AM Squared Ltd acquired a new position in shares of Sonic Automotive during the second quarter valued at about $82,000. TFO Wealth Partners LLC raised its holdings in Sonic Automotive by 35,366.7% in the 4th quarter. TFO Wealth Partners LLC now owns 2,128 shares of the company’s stock valued at $120,000 after acquiring an additional 2,122 shares in the last quarter. Finally, Point72 DIFC Ltd raised its stake in shares of Sonic Automotive by 6.9% in the second quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock valued at $158,000 after purchasing an additional 187 shares in the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.