Needham & Company LLC Boosts Sonic Automotive (NYSE:SAH) Price Target to $74.00

Sonic Automotive (NYSE:SAH) had its price objective increased by Needham & Company LLC from $73.00 to $74.00 in a research note released on Friday morning, Benzinga reports. They currently have a buy rating on the stock.

Other equities research analysts have also issued reports about the company. Stephens started coverage on Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target on the stock. Bank of America dropped their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a report on Monday, October 14th. JPMorgan Chase & Co. lifted their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Finally, 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. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Sonic Automotive presently has a consensus rating of “Moderate Buy” and a consensus target price of $66.50.

Sonic Automotive Price Performance

Shares of SAH stock opened at $56.87 on Friday. The firm has a fifty day moving average of $57.66 and a two-hundred day moving average of $56.66. The firm has a market cap of $1.93 billion, a P/E ratio of 11.65 and a beta of 1.60. Sonic Automotive has a 1-year low of $46.33 and a 1-year high of $64.68. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.10 and a quick ratio of 0.36.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data on Thursday, October 24th. The company reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.43 by ($0.17). Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. The firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. During the same period in the prior year, the firm earned $2.02 earnings per share. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year. As a group, research analysts anticipate that Sonic Automotive will post 5.63 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.46%. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Friday, December 13th. Sonic Automotive’s payout ratio is presently 28.69%.

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently made changes to their positions in the company. Victory Capital Management Inc. boosted its position 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. Squarepoint Ops LLC boosted its position in Sonic Automotive by 679.8% during the 2nd quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock worth $5,175,000 after acquiring an additional 82,823 shares during the period. Westwood Holdings Group Inc. boosted 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 acquiring an additional 70,540 shares during the period. Marshall Wace LLP grew its stake in shares of Sonic Automotive by 831.1% in the second quarter. Marshall Wace LLP now owns 35,969 shares of the company’s stock worth $1,959,000 after purchasing an additional 32,106 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Sonic Automotive during the second quarter valued at $1,351,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.