Zacks Investment Research Downgrades Sonic Automotive Inc. (SAH) to Sell
Sonic Automotive Inc. (NYSE:SAH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Sonic Automotive’s earnings estimates have been going down lately. The company has a mixed record of earnings surprises in recent quarters. The company’s extensive merchandise inventory raises concerns. Moreover, a highly competitive industry and fluctuations in foreign exchange rate remain headwinds. “
Shares of Sonic Automotive (NYSE:SAH) traded down 2.04% during trading on Thursday, hitting $18.76. The stock had a trading volume of 123,075 shares. Sonic Automotive has a 12 month low of $15.68 and a 12 month high of $25.77. The company has a market cap of $852.59 million, a PE ratio of 9.54 and a beta of 1.81. The stock has a 50 day moving average of $17.92 and a 200 day moving average of $17.62.
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Sonic Automotive (NYSE:SAH) last released its earnings results on Tuesday, July 26th. The company reported $0.50 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.50. Sonic Automotive had a return on equity of 14.65% and a net margin of 0.99%. The firm had revenue of $2.38 billion for the quarter, compared to the consensus estimate of $2.48 billion. During the same period in the prior year, the firm earned $0.46 EPS. The firm’s revenue was down 1.7% on a year-over-year basis. Equities analysts forecast that Sonic Automotive will post $2.10 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Thursday, September 15th will be given a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 1.04%. The ex-dividend date of this dividend is Tuesday, September 13th. Sonic Automotive’s payout ratio is 10.26%.
In other news, insider O Bruton Smith bought 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 24th. The shares were purchased at an average cost of $16.83 per share, with a total value of $841,500.00. Following the transaction, the insider now directly owns 525,242 shares in the company, valued at $8,839,822.86. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 29.32% of the stock is owned by corporate insiders.
Large investors have recently made changes to their positions in the company. Towle & Co. bought a new stake in shares of Sonic Automotive during the second quarter valued at $11,617,000. Lombardia Capital Partners LLC increased its stake in shares of Sonic Automotive by 23.4% in the second quarter. Lombardia Capital Partners LLC now owns 1,231,582 shares of the company’s stock valued at $21,072,000 after buying an additional 233,291 shares in the last quarter. Prudential Financial Inc. increased its stake in shares of Sonic Automotive by 161.0% in the first quarter. Prudential Financial Inc. now owns 304,209 shares of the company’s stock valued at $5,622,000 after buying an additional 187,659 shares in the last quarter. LSV Asset Management increased its stake in shares of Sonic Automotive by 14.8% in the second quarter. LSV Asset Management now owns 1,384,131 shares of the company’s stock valued at $23,682,000 after buying an additional 178,025 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in shares of Sonic Automotive by 19.7% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,064,365 shares of the company’s stock valued at $19,669,000 after buying an additional 175,536 shares in the last quarter. 65.88% of the stock is currently owned by institutional investors.
Sonic Automotive Company Profile
Sonic Automotive, Inc is an automotive retailer in the United States. The Company’s operating segments include Franchised Dealerships and EchoPark. The Company’s Franchised Dealerships segment consists of traditional retail automotive franchises that sell new and used vehicles, replacement parts and vehicle repair and maintenance services, and finance and insurance products.
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