Brokerages Set Sonic Automotive, Inc. (NYSE:SAH) PT at $67.20

Shares of Sonic Automotive, Inc. (NYSE:SAH) have earned an average recommendation of “Moderate Buy” from the six analysts that are presently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $67.20.

Several analysts have weighed in on SAH shares. Bank of America dropped their price target on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, October 14th. Needham & Company LLC restated a “buy” rating and issued a $74.00 target price on shares of Sonic Automotive in a research report on Thursday, January 16th. Seaport Res Ptn upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. JPMorgan Chase & Co. reduced their price objective on Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Finally, 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 research report on Wednesday, September 25th.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of the company. Texas Permanent School Fund Corp grew its stake in Sonic Automotive by 23.7% during the 2nd quarter. Texas Permanent School Fund Corp now owns 16,091 shares of the company’s stock worth $876,000 after purchasing an additional 3,083 shares in the last quarter. Renaissance Technologies LLC grew its stake in 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 in the last quarter. Hsbc Holdings PLC grew its stake in Sonic Automotive by 36.0% during the 2nd quarter. Hsbc Holdings PLC now owns 6,743 shares of the company’s stock worth $366,000 after purchasing an additional 1,784 shares in the last quarter. Inspire Investing LLC grew its stake in Sonic Automotive by 3.4% during the 2nd quarter. Inspire Investing LLC now owns 6,475 shares of the company’s stock worth $353,000 after purchasing an additional 211 shares in the last quarter. Finally, Intech Investment Management LLC acquired a new position in Sonic Automotive during the 2nd quarter worth $228,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Trading Up 2.7 %

Shares of NYSE:SAH opened at $70.19 on Friday. The business’s 50-day moving average is $65.79 and its 200 day moving average is $60.71. Sonic Automotive has a 1 year low of $47.82 and a 1 year high of $70.88. The firm has a market capitalization of $2.40 billion, a P/E ratio of 12.49 and a beta of 1.67. The company has a debt-to-equity ratio of 1.87, a current ratio of 1.11 and a quick ratio of 0.35.

Sonic Automotive (NYSE:SAH) last announced its earnings results on Thursday, October 24th. The company reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $3.55 billion. During the same period in the prior year, the company earned $2.02 earnings per share. The company’s quarterly revenue was down 4.2% on a year-over-year basis. On average, research analysts predict that Sonic Automotive will post 5.61 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th were paid a $0.35 dividend. The ex-dividend date was Friday, December 13th. This is a boost 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 1.99%. Sonic Automotive’s payout ratio is presently 24.91%.

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.