Sonic Automotive, Inc. (NYSE:SAH) Receives $66.50 Average Price Target from Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have earned an average recommendation of “Moderate Buy” from the six ratings firms that are covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $66.50.

A number of analysts have recently weighed in on SAH shares. Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Bank of America cut their price objective on shares of Sonic Automotive from $68.00 to $67.00 and set a “buy” rating on the stock in a research note on Monday, July 22nd. Stephens started coverage on shares of Sonic Automotive in a research note on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective on the stock. Needham & Company LLC started coverage on shares of Sonic Automotive in a research note on Tuesday, August 20th. They issued a “buy” rating and a $73.00 price objective on the stock. Finally, JPMorgan Chase & Co. raised their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday, September 10th.

Insider Activity

In other news, CFO Heath Byrd sold 19,827 shares of the stock in a transaction dated Thursday, July 18th. The shares were sold at an average price of $60.00, for a total value of $1,189,620.00. Following the completion of the transaction, the chief financial officer now owns 173,618 shares in the company, valued at $10,417,080. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 40.95% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Several hedge funds have recently added to or reduced their stakes in SAH. Allspring Global Investments Holdings LLC purchased a new position in Sonic Automotive during the 1st quarter valued at about $30,000. Innealta Capital LLC acquired a new stake in shares of Sonic Automotive during the 2nd quarter worth about $41,000. AM Squared Ltd acquired a new stake in shares of Sonic Automotive during the 2nd quarter worth about $82,000. Point72 DIFC Ltd boosted its stake in shares of Sonic Automotive by 6.9% during the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after purchasing an additional 187 shares during the last quarter. Finally, Intech Investment Management LLC acquired a new stake in shares of Sonic Automotive in the second quarter worth approximately $228,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

Sonic Automotive Trading Up 1.9 %

NYSE:SAH opened at $54.62 on Friday. Sonic Automotive has a 52 week low of $41.19 and a 52 week high of $64.68. The firm has a 50 day moving average of $58.23 and a 200 day moving average of $56.54. The company has a quick ratio of 0.36, a current ratio of 1.10 and a debt-to-equity ratio of 2.04. The stock has a market capitalization of $1.86 billion, a price-to-earnings ratio of 10.10 and a beta of 1.60.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Monday, August 5th. The company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.38 by $0.09. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. The business had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the prior year, the business posted $1.83 EPS. Sonic Automotive’s revenue for the quarter was down 5.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Sonic Automotive will post 5.68 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Friday, September 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.20%. Sonic Automotive’s dividend payout ratio is presently 22.18%.

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.