Sonic Automotive, Inc. (NYSE:SAH) Given Average Recommendation of “Moderate Buy” by Brokerages

Sonic Automotive, Inc. (NYSE:SAH) has been assigned a consensus recommendation of “Moderate Buy” from the six research firms that are presently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $67.40.

Several research firms have issued reports on SAH. Needham & Company LLC increased their price objective on Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Bank of America reduced their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Seaport Res Ptn raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. JPMorgan Chase & Co. raised their price target on Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Finally, Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th.

Sonic Automotive Price Performance

NYSE SAH opened at $69.14 on Friday. The stock has a 50-day simple moving average of $59.76 and a 200 day simple moving average of $58.17. Sonic Automotive has a twelve month low of $47.82 and a twelve month high of $70.88. The stock has a market capitalization of $2.36 billion, a PE ratio of 12.30 and a beta of 1.61. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11.

Sonic Automotive (NYSE:SAH) last released its earnings results on Thursday, October 24th. The company reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.43 by ($0.17). The company had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The firm’s quarterly revenue was down 4.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.02 EPS. Research analysts anticipate that Sonic Automotive will post 5.6 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be issued a $0.35 dividend. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.40 annualized dividend and a dividend yield of 2.02%. Sonic Automotive’s payout ratio is 24.91%.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently modified their holdings of the business. Millennium Management LLC lifted its position in shares of Sonic Automotive by 3.8% in the second quarter. Millennium Management LLC now owns 456,588 shares of the company’s stock worth $24,870,000 after purchasing an additional 16,556 shares in the last quarter. Victory Capital Management Inc. boosted its position in Sonic Automotive by 524.4% during 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 last quarter. Squarepoint Ops LLC grew its stake in Sonic Automotive by 679.8% in the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock valued at $5,175,000 after purchasing an additional 82,823 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Sonic Automotive by 26.8% during the 2nd quarter. Renaissance Technologies LLC now owns 88,826 shares of the company’s stock worth $4,838,000 after purchasing an additional 18,800 shares during the last quarter. Finally, Phocas Financial Corp. bought a new stake in shares of Sonic Automotive during the 3rd quarter worth approximately $3,645,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

About Sonic Automotive

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.