Sonic Automotive (NYSE:SAH) Shares Gap Down – What’s Next?

Shares of Sonic Automotive, Inc. (NYSE:SAH) gapped down before the market opened on Thursday . The stock had previously closed at $83.65, but opened at $78.44. Sonic Automotive shares last traded at $79.5350, with a volume of 26,960 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on SAH shares. JPMorgan Chase & Co. increased their target price on Sonic Automotive from $67.00 to $77.00 and gave the stock an “underweight” rating in a research note on Thursday, May 7th. UBS Group started coverage on Sonic Automotive in a report on Wednesday, May 27th. They issued a “buy” rating and a $90.00 price target on the stock. Stephens lowered their price target on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a report on Thursday, February 19th. Barclays upped their price target on Sonic Automotive from $67.00 to $77.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 5th. Finally, Zacks Research upgraded Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Sonic Automotive presently has a consensus rating of “Hold” and a consensus price target of $81.63.

Sonic Automotive Trading Up 1.8%

The business has a fifty day simple moving average of $76.62 and a 200 day simple moving average of $67.78. The stock has a market cap of $2.51 billion, a price-to-earnings ratio of 25.32, a PEG ratio of 1.92 and a beta of 0.88. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH) last announced its earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.22. The firm had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.Sonic Automotive’s quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.48 EPS. As a group, equities analysts anticipate that Sonic Automotive, Inc. will post 6.92 EPS for the current year.

Sonic Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.41 per share. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a yield of 2.1%. Sonic Automotive’s payout ratio is currently 52.23%.

Insider Buying and Selling

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the sale, the president owned 543,668 shares in the company, valued at approximately $46,331,386.96. This represents a 6.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 100,000 shares of company stock worth $8,408,160. 43.68% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sonic Automotive

A number of large investors have recently bought and sold shares of the stock. Mitsubishi UFJ Trust & Banking Corp grew its holdings in Sonic Automotive by 1.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after buying an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Sonic Automotive by 1.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock valued at $924,000 after buying an additional 273 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Sonic Automotive by 8.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after buying an additional 284 shares during the last quarter. CWM LLC grew its holdings in Sonic Automotive by 11.3% during the 4th quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after buying an additional 291 shares during the last quarter. Finally, Creative Planning boosted its holdings in shares of Sonic Automotive by 12.4% during the third quarter. Creative Planning now owns 3,000 shares of the company’s stock worth $228,000 after purchasing an additional 332 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 is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.