Seaport Res Ptn Issues Pessimistic Estimate for SAH Earnings

Sonic Automotive, Inc. (NYSE:SAH) – Investment analysts at Seaport Res Ptn dropped their FY2024 earnings per share estimates for Sonic Automotive in a research report issued to clients and investors on Thursday, November 21st. Seaport Res Ptn analyst G. Chin now forecasts that the company will post earnings per share of $5.50 for the year, down from their prior forecast of $5.70. Seaport Res Ptn has a “Strong-Buy” rating on the stock. The consensus estimate for Sonic Automotive’s current full-year earnings is $5.60 per share. Seaport Res Ptn also issued estimates for Sonic Automotive’s Q4 2024 earnings at $1.41 EPS and FY2025 earnings at $6.15 EPS.

Several other brokerages also recently weighed in on SAH. JPMorgan Chase & Co. increased their price target on Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, September 10th. Bank of America lowered their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Stephens initiated coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 target price on the stock. Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Finally, Needham & Company LLC upped their target price on Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a research note on Friday, October 25th. Three analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Sonic Automotive currently has an average rating of “Moderate Buy” and an average target price of $67.40.

Sonic Automotive Price Performance

Shares of NYSE:SAH opened at $69.63 on Monday. The stock has a market capitalization of $2.38 billion, a price-to-earnings ratio of 12.39 and a beta of 1.61. Sonic Automotive has a one year low of $47.82 and a one year high of $70.88. The company has a 50-day simple moving average of $59.00 and a 200-day simple moving average of $57.92. 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 (NYSE:SAH) last announced its quarterly earnings results on Thursday, October 24th. The company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.43 by ($0.17). Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The company had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.55 billion. During the same quarter in the prior year, the business earned $2.02 earnings per share. Sonic Automotive’s revenue was down 4.2% compared to the same quarter last year.

Sonic Automotive Increases Dividend

The business also recently declared 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 a boost from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date is Friday, December 13th. This represents a $1.40 annualized dividend and a dividend yield of 2.01%. Sonic Automotive’s dividend payout ratio (DPR) is presently 24.91%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SAH. Point72 DIFC Ltd boosted its stake in Sonic Automotive by 6.9% during the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock valued at $158,000 after purchasing an additional 187 shares during the period. Inspire Investing LLC boosted its stake in shares of Sonic Automotive by 3.4% during the 2nd quarter. Inspire Investing LLC now owns 6,475 shares of the company’s stock worth $353,000 after acquiring an additional 211 shares in the last quarter. Arizona State Retirement System increased its stake in Sonic Automotive by 10.8% in the 2nd quarter. Arizona State Retirement System now owns 4,324 shares of the company’s stock worth $236,000 after purchasing an additional 420 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Sonic Automotive by 3.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 12,806 shares of the company’s stock worth $730,000 after acquiring an additional 458 shares in the last quarter. Finally, Point72 Asset Management L.P. boosted its stake in Sonic Automotive by 4.6% in the 3rd quarter. Point72 Asset Management L.P. now owns 11,400 shares of the company’s stock worth $667,000 after purchasing an additional 500 shares during the period. 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.