Sonic Automotive, Inc. (NYSE:SAH) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been given a consensus rating of “Moderate Buy” by the six analysts that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokers that have covered the stock in the last year is $67.40.

A number of research firms have commented on SAH. 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. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th. Seaport Res Ptn raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. Stephens assumed coverage on shares of Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 target price on the stock. Finally, Bank of America cut their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, October 14th.

Institutional Trading of Sonic Automotive

A number of large investors have recently made changes to their positions in SAH. Innealta Capital LLC purchased a new position in shares of Sonic Automotive in the 2nd quarter worth approximately $41,000. Point72 Asia Singapore Pte. Ltd. boosted its stake in Sonic Automotive by 100.3% during the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 1,196 shares of the company’s stock worth $70,000 after buying an additional 599 shares during the period. AM Squared Ltd bought a new position in Sonic Automotive during the second quarter valued at $82,000. Point72 DIFC Ltd raised its stake in shares of Sonic Automotive by 6.9% in the second quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock valued at $158,000 after acquiring an additional 187 shares during the period. Finally, Intech Investment Management LLC bought a new stake in shares of Sonic Automotive in the 2nd quarter worth about $228,000. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Price Performance

NYSE SAH opened at $63.59 on Wednesday. The company has a current ratio of 1.11, a quick ratio of 0.35 and a debt-to-equity ratio of 1.87. Sonic Automotive has a 12 month low of $47.82 and a 12 month high of $70.88. The stock has a market cap of $2.17 billion, a price-to-earnings ratio of 11.31 and a beta of 1.65. The company’s 50 day moving average is $63.80 and its two-hundred day moving average is $59.46.

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

Sonic Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be given a dividend of $0.35 per share. This is an increase 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 2.20%. The ex-dividend date is Friday, December 13th. Sonic Automotive’s dividend payout ratio is currently 24.91%.

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.