Sonic Automotive (NYSE:SAH) Share Price Passes Above Two Hundred Day Moving Average – Should You Sell?

Sonic Automotive, Inc. (NYSE:SAH) shares passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $59.88 and traded as high as $63.93. Sonic Automotive shares last traded at $63.36, with a volume of 163,659 shares.

Analysts Set New Price Targets

Several brokerages have recently commented on SAH. Bank of America decreased their target price on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, October 14th. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their target price for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Needham & Company LLC boosted their price objective on Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a research report on Friday, October 25th. Finally, Seaport Res Ptn upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. Three equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $67.40.

Sonic Automotive Stock Down 2.0 %

The firm has a 50 day simple moving average of $64.99 and a two-hundred day simple moving average of $59.88. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11. The stock has a market cap of $2.17 billion, a P/E ratio of 11.27 and a beta of 1.67.

Sonic Automotive (NYSE:SAH) last announced 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 business had revenue of $3.49 billion for 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 revenue was down 4.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.02 EPS. Equities research analysts predict that Sonic Automotive, Inc. will post 5.6 earnings per share for the current year.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.21%. The ex-dividend date of this dividend is Friday, December 13th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s payout ratio is currently 24.91%.

Institutional Trading of Sonic Automotive

Hedge funds and other institutional investors have recently modified their holdings of the company. Barclays PLC raised its stake in shares of Sonic Automotive by 346.1% in the 3rd quarter. Barclays PLC now owns 24,413 shares of the company’s stock worth $1,427,000 after buying an additional 18,940 shares in the last quarter. Harbor Capital Advisors Inc. raised its stake in shares of Sonic Automotive by 124.7% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock worth $3,239,000 after buying an additional 30,731 shares in the last quarter. Intech Investment Management LLC raised its stake in shares of Sonic Automotive by 418.9% in the 3rd quarter. Intech Investment Management LLC now owns 21,692 shares of the company’s stock worth $1,269,000 after buying an additional 17,512 shares in the last quarter. Victory Capital Management Inc. raised its stake 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 in the last quarter. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in shares of Sonic Automotive in the 3rd quarter worth $532,000. Institutional investors own 46.92% of the company’s stock.

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.