Analysts Set Sonic Automotive, Inc. (NYSE:SAH) PT at $63.50

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been assigned an average rating of “Moderate Buy” from the six brokerages that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, one has given a hold rating and four have given a buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $63.50.

Several equities research analysts have issued reports on the company. Needham & Company LLC assumed coverage on Sonic Automotive in a research note on Tuesday, August 20th. They set a “buy” rating and a $73.00 target price for the company. Bank of America dropped their price objective on Sonic Automotive from $68.00 to $67.00 and set a “buy” rating for the company in a research note on Monday, July 22nd. JPMorgan Chase & Co. boosted their target price on Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 10th. Finally, Stephens initiated coverage on Sonic Automotive in a research note on Thursday, September 12th. They set an “equal weight” rating and a $64.00 target price for the company.

Sonic Automotive Stock Performance

NYSE SAH opened at $56.50 on Monday. The company has a market cap of $1.91 billion, a PE ratio of 11.58 and a beta of 1.61. The stock’s 50 day simple moving average is $58.31 and its 200-day simple moving average is $56.06. Sonic Automotive has a 1-year low of $41.19 and a 1-year high of $64.68. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.10 and a quick ratio of 0.36.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data on Monday, August 5th. The company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.38 by $0.09. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm had revenue of $3.45 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter last year, the business posted $1.83 earnings per share. The firm’s revenue was down 5.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Sonic Automotive will post 5.79 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Friday, September 13th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 2.12%. The ex-dividend date of this dividend is Friday, September 13th. Sonic Automotive’s payout ratio is currently 24.59%.

Insider Buying and Selling at Sonic Automotive

In other Sonic Automotive news, CFO Heath Byrd sold 19,827 shares of the company’s stock in a transaction that occurred on Thursday, July 18th. The stock was sold at an average price of $60.00, for a total transaction of $1,189,620.00. Following the completion of the sale, the chief financial officer now directly owns 173,618 shares of the company’s stock, valued at approximately $10,417,080. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 40.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sonic Automotive

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Westwood Holdings Group Inc. purchased a new stake in Sonic Automotive in the 4th quarter valued at approximately $31,473,000. Victory Capital Management Inc. raised its position in shares of Sonic Automotive by 524.4% in the 2nd quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock worth $5,480,000 after buying an additional 84,489 shares during the period. Squarepoint Ops LLC increased its holdings in 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 purchasing an additional 82,823 shares in the last quarter. Marshall Wace LLP increased its holdings in Sonic Automotive by 831.1% in the 2nd quarter. Marshall Wace LLP now owns 35,969 shares of the company’s stock valued at $1,959,000 after purchasing an additional 32,106 shares in the last quarter. Finally, Quadrature Capital Ltd acquired a new stake in Sonic Automotive in the 4th quarter valued at $1,724,000. 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.