Sonic Automotive, Inc. (NYSE:SAH) Receives Average Rating of “Hold” from Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH) have received a consensus recommendation of “Hold” from the eleven research firms that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation and five have issued a buy recommendation on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $90.6667.

SAH has been the topic of a number of analyst reports. UBS Group increased their target price on shares of Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Needham & Company LLC reiterated a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research note on Tuesday, March 31st. Bank of America increased their price target on Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Weiss Ratings cut Sonic Automotive from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 7th.

Insider Buying and Selling

In related news, President Jeff Dyke sold 50,000 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president owned 111,622 shares of the company’s stock, valued at $9,261,277.34. The trade was a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 100,000 shares of company stock valued at $8,408,160 over the last three months. 43.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds have recently bought and sold shares of the company. A&I Financial Services LLC lifted its holdings in shares of Sonic Automotive by 0.9% in the second quarter. A&I Financial Services LLC now owns 11,755 shares of the company’s stock worth $997,000 after acquiring an additional 109 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its holdings in shares of Sonic Automotive by 1.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after purchasing an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its position in Sonic Automotive by 1.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock worth $924,000 after purchasing an additional 273 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Sonic Automotive by 8.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock worth $221,000 after purchasing an additional 284 shares in the last quarter. Finally, CWM LLC lifted its stake in Sonic Automotive by 11.3% in the 4th quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after purchasing an additional 291 shares during the last quarter. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Trading Up 3.5%

Shares of Sonic Automotive stock opened at $100.90 on Thursday. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03. The firm has a 50-day moving average of $84.85 and a 200-day moving average of $72.14. Sonic Automotive has a 52-week low of $54.11 and a 52-week high of $104.30. The stock has a market cap of $3.19 billion, a PE ratio of 32.13, a PEG ratio of 1.49 and a beta of 0.89.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.40 by $0.22. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The business had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same period last year, the firm earned $1.48 earnings per share. Sonic Automotive’s revenue for the quarter was up 1.0% compared to the same quarter last year. As a group, sell-side analysts forecast that Sonic Automotive will post 6.93 EPS for the current year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, June 15th were given a $0.41 dividend. The ex-dividend date was Monday, June 15th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.6%. Sonic Automotive’s dividend payout ratio (DPR) is 52.23%.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.