Sonic Automotive (NYSE:SAH) Hits New 1-Year High on Strong Earnings

Sonic Automotive, Inc. (NYSE:SAH) reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $76.78 and last traded at $71.54, with a volume of 7924 shares changing hands. The stock had previously closed at $74.76.

The company reported $1.51 earnings per share for the quarter, topping analysts’ consensus estimates of $1.46 by $0.05. Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Friday, March 14th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, March 14th. This represents a $1.40 dividend on an annualized basis and a yield of 1.95%. Sonic Automotive’s dividend payout ratio is currently 24.91%.

Wall Street Analyst Weigh In

SAH has been the topic of a number of recent analyst reports. Seaport Res Ptn upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. StockNews.com upgraded shares of Sonic Automotive from a “hold” rating to a “buy” rating in a research report on Wednesday. JPMorgan Chase & Co. dropped their target price on shares of Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Stephens upgraded shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 24th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $74.00 price objective on shares of Sonic Automotive in a report on Thursday, January 16th. One research analyst has rated the stock with a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Sonic Automotive currently has an average rating of “Buy” and a consensus price target of $67.20.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SAH. Phocas Financial Corp. purchased a new stake in shares of Sonic Automotive in the third quarter valued at approximately $3,645,000. Denali Advisors LLC grew its holdings in Sonic Automotive by 111.2% in the 4th quarter. Denali Advisors LLC now owns 87,100 shares of the company’s stock valued at $5,518,000 after buying an additional 45,857 shares in the last quarter. Harbor Capital Advisors Inc. grew its holdings in Sonic Automotive by 124.7% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock valued at $3,239,000 after buying an additional 30,731 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of Sonic Automotive by 52.1% in the 4th quarter. JPMorgan Chase & Co. now owns 80,957 shares of the company’s stock worth $5,129,000 after acquiring an additional 27,726 shares during the last quarter. Finally, Assenagon Asset Management S.A. purchased a new position in shares of Sonic Automotive during the 3rd quarter worth $1,244,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Stock Performance

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 firm’s 50-day moving average price is $67.79 and its two-hundred day moving average price is $62.56. The stock has a market cap of $2.45 billion, a price-to-earnings ratio of 12.74 and a beta of 1.68.

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.