Sonic Automotive Inc. (NYSE:SAH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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 2.2021% during trading on Thursday, reaching $18.7283. The company had a trading volume of 116,102 shares. The firm’s 50 day moving average price is $17.92 and its 200 day moving average price is $17.62. Sonic Automotive has a 12 month low of $15.68 and a 12 month high of $25.77. The firm has a market capitalization of $851.15 million, a P/E ratio of 9.5261 and a beta of 1.81.
Sonic Automotive (NYSE:SAH) last issued its earnings results on Tuesday, July 26th. The company reported $0.50 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.50. The business earned $2.38 billion during the quarter, compared to the consensus estimate of $2.48 billion. Sonic Automotive had a return on equity of 14.65% and a net margin of 0.99%. The company’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.46 EPS. Equities analysts predict that Sonic Automotive will post $2.10 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Thursday, September 15th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.04%. The ex-dividend date is Tuesday, September 13th. Sonic Automotive’s dividend payout ratio (DPR) is 10.26%.
In other Sonic Automotive news, insider O Bruton Smith bought 50,000 shares of the business’s stock in a transaction dated Monday, August 22nd. The stock was acquired at an average cost of $16.74 per share, with a total value of $837,000.00. Following the purchase, the insider now owns 475,242 shares in the company, valued at approximately $7,955,551.08. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 29.32% of the company’s stock.
Institutional investors have recently modified their holdings of the company. TIAA CREF Investment Management LLC increased its position in shares of Sonic Automotive by 51.5% in the first quarter. TIAA CREF Investment Management LLC now owns 183,773 shares of the company’s stock worth $3,396,000 after buying an additional 62,455 shares during the period. Prudential Financial Inc. increased its position 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 worth $5,622,000 after buying an additional 187,659 shares during the period. BlackRock Group LTD increased its position in shares of Sonic Automotive by 3.9% in the first quarter. BlackRock Group LTD now owns 75,901 shares of the company’s stock worth $1,402,000 after buying an additional 2,846 shares during the period. BlackRock Institutional Trust Company N.A. increased its position 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 worth $19,669,000 after buying an additional 175,536 shares during the period. Finally, Menta Capital LLC acquired a new position in shares of Sonic Automotive during the first quarter worth about $410,000. 65.88% of the stock is owned by institutional investors and hedge funds.
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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