Brokerages Set Sonic Automotive, Inc. (NYSE:SAH) Price Target at $67.40

Sonic Automotive, Inc. (NYSE:SAH) has been given a consensus rating of “Moderate Buy” by the five research firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $67.40.

Several equities analysts recently issued reports on SAH shares. JPMorgan Chase & Co. increased their target price on Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 10th. Stephens started coverage on shares of Sonic Automotive in a research note on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target on the stock. Bank of America lowered their price objective 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. Needham & Company LLC upped their target price on shares of Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Finally, Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th.

Hedge Funds Weigh In On Sonic Automotive

A number of institutional investors and hedge funds have recently modified their holdings of SAH. Westwood Holdings Group Inc. grew its position in Sonic Automotive by 12.6% during the 1st quarter. Westwood Holdings Group Inc. now owns 630,450 shares of the company’s stock worth $35,898,000 after purchasing an additional 70,540 shares during the last quarter. Victory Capital Management Inc. boosted its stake in shares of Sonic Automotive by 524.4% during the second 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 during the period. Harbor Capital Advisors Inc. grew its holdings in shares of Sonic Automotive by 124.7% during the third 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 during the last quarter. Quantbot Technologies LP increased its position in Sonic Automotive by 109.1% in the 1st quarter. Quantbot Technologies LP now owns 17,623 shares of the company’s stock valued at $1,003,000 after acquiring an additional 9,193 shares during the period. Finally, Assenagon Asset Management S.A. purchased a new stake in Sonic Automotive during the 3rd quarter valued at approximately $1,244,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Price Performance

Sonic Automotive stock opened at $64.67 on Tuesday. The company’s 50 day simple moving average is $57.28 and its 200-day simple moving average is $57.21. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11. Sonic Automotive has a 1 year low of $47.82 and a 1 year high of $66.25. The company has a market capitalization of $2.21 billion, a price-to-earnings ratio of 11.51 and a beta of 1.61.

Sonic Automotive (NYSE:SAH) last announced its earnings results 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 net margin of 1.41% and a return on equity of 21.27%. The firm had revenue of $3.49 billion during the quarter, compared to analysts’ expectations of $3.55 billion. During the same period in the previous year, the firm earned $2.02 EPS. The firm’s revenue for the quarter was down 4.2% compared to the same quarter last year. As a group, equities research analysts expect that Sonic Automotive will post 5.62 earnings per share for the current year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Friday, December 13th will be paid a $0.35 dividend. The ex-dividend date is Friday, December 13th. This represents a $1.40 dividend on an annualized basis and a yield of 2.16%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s payout ratio is currently 21.35%.

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.