Sonic Automotive, Inc. (NYSE:SAH) Receives $67.40 Average Price Target from Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH) have earned an average rating of “Moderate Buy” from the five analysts that are currently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $67.40.

SAH has been the topic of several research analyst reports. JPMorgan Chase & Co. lifted their target price on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday, September 10th. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th. Bank of America reduced their target price on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a report on Monday, October 14th. Stephens started coverage on Sonic Automotive in a research report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 target price on the stock. Finally, Needham & Company LLC boosted their price target on Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research report on Friday, October 25th.

Sonic Automotive Price Performance

Shares of Sonic Automotive stock opened at $64.67 on Tuesday. The firm has a market cap of $2.21 billion, a PE ratio of 11.51 and a beta of 1.61. The business has a 50-day moving average price of $57.28 and a 200 day moving average price of $57.21. The company has a quick ratio of 0.35, a current ratio of 1.11 and a debt-to-equity ratio of 1.87. Sonic Automotive has a twelve month low of $47.82 and a twelve month high of $66.25.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Thursday, October 24th. The company reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17). Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The business had revenue of $3.49 billion during the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter last year, the firm earned $2.02 earnings per share. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year. Sell-side analysts predict that Sonic Automotive will post 5.62 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be given a $0.35 dividend. The ex-dividend date of this dividend is Friday, December 13th. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.16%. Sonic Automotive’s dividend payout ratio is 21.35%.

Institutional Trading of Sonic Automotive

Hedge funds and other institutional investors have recently modified their holdings of the stock. Victory Capital Management Inc. grew its holdings in shares of Sonic Automotive by 524.4% in the second quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock valued at $5,480,000 after purchasing an additional 84,489 shares during the period. Squarepoint Ops LLC grew its stake in shares of Sonic Automotive by 679.8% in the 2nd quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock valued at $5,175,000 after buying an additional 82,823 shares during the period. Westwood Holdings Group Inc. increased its holdings in shares of Sonic Automotive by 12.6% during the 1st quarter. Westwood Holdings Group Inc. now owns 630,450 shares of the company’s stock worth $35,898,000 after buying an additional 70,540 shares during the last quarter. Marshall Wace LLP raised its position in shares of Sonic Automotive by 831.1% during the 2nd quarter. Marshall Wace LLP now owns 35,969 shares of the company’s stock valued at $1,959,000 after buying an additional 32,106 shares during the period. Finally, Harbor Capital Advisors Inc. lifted its holdings in Sonic Automotive by 124.7% in the third quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock valued at $3,239,000 after acquiring an additional 30,731 shares during the last quarter. 46.92% of the stock is 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.