Sonic Automotive (NYSE:SAH) Shares Gap Down – Time to Sell?

Sonic Automotive, Inc. (NYSE:SAH) shares gapped down prior to trading on Thursday . The stock had previously closed at $112.66, but opened at $105.16. Sonic Automotive shares last traded at $103.0740, with a volume of 19,549 shares.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SAH. Citigroup boosted their price target on Sonic Automotive from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, May 11th. UBS Group raised their price objective on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Bank of America lifted their price objective on Sonic Automotive from $91.00 to $108.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Morgan Stanley set a $72.00 target price on shares of Sonic Automotive in a research report on Thursday, May 7th. Finally, Weiss Ratings upgraded shares of Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 23rd. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $90.67.

Sonic Automotive Trading Down 11.0%

The stock has a market capitalization of $3.17 billion, a PE ratio of 31.95, a PEG ratio of 1.60 and a beta of 0.89. The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93. The business’s 50-day moving average is $87.78 and its two-hundred day moving average is $73.57.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.75 by $0.07. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The firm’s quarterly revenue was up 7.6% on a year-over-year basis. During the same period last year, the firm earned $2.19 EPS. On average, analysts predict that Sonic Automotive, Inc. will post 6.93 earnings per share for the current year.

Insider Buying and Selling

In other Sonic Automotive news, President Jeff Dyke sold 50,000 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president directly owned 111,622 shares of the company’s stock, valued at $9,261,277.34. This represents a 30.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 100,000 shares of company stock valued at $8,408,160. Insiders own 43.68% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SAH. Northwestern Mutual Wealth Management Co. boosted its holdings in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares during the last quarter. Camelot Portfolios LLC purchased a new stake in Sonic Automotive during the 4th quarter worth approximately $41,000. Torren Management LLC acquired a new position in shares of Sonic Automotive in the 4th quarter valued at approximately $50,000. National Bank of Canada FI acquired a new position in shares of Sonic Automotive in the 3rd quarter valued at approximately $78,000. Finally, State of Wyoming purchased a new position in shares of Sonic Automotive during the 1st quarter valued at approximately $79,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

About Sonic Automotive

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.