Sonic Automotive, Inc. (NYSE:SAH) Receives Average Recommendation of “Moderate Buy” from Brokerages

Sonic Automotive, Inc. (NYSE:SAH) has earned an average recommendation of “Moderate Buy” from the six research firms that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $63.50.

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

Sonic Automotive Stock Performance

Sonic Automotive stock opened at $57.62 on Monday. Sonic Automotive has a 12-month low of $41.19 and a 12-month 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. The company has a market capitalization of $1.95 billion, a price-to-earnings ratio of 11.81 and a beta of 1.61. The firm’s fifty day moving average price is $58.48 and its 200 day moving average price is $56.19.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings results on Monday, August 5th. The company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.38 by $0.09. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The business had revenue of $3.45 billion for the quarter, compared to analysts’ expectations of $3.56 billion. During the same quarter in the previous year, the firm posted $1.83 earnings per share. The company’s revenue was down 5.5% compared to the same quarter last year. On average, research analysts forecast that Sonic Automotive will post 5.79 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Friday, September 13th will be given a dividend of $0.30 per share. The ex-dividend date is Friday, September 13th. This represents a $1.20 annualized dividend and a dividend yield of 2.08%. Sonic Automotive’s dividend payout ratio is presently 24.59%.

Insider Activity at Sonic Automotive

In other Sonic Automotive news, CFO Heath Byrd sold 19,827 shares of the business’s stock in a transaction on Thursday, July 18th. The stock was sold at an average price of $60.00, for a total transaction 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 approximately $10,417,080. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 40.95% of the stock is owned by insiders.

Hedge Funds Weigh In On Sonic Automotive

Large investors have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC bought a new position in shares of Sonic Automotive in the first quarter valued at approximately $30,000. Innealta Capital LLC bought a new position in Sonic Automotive during the 2nd quarter valued at $41,000. AM Squared Ltd acquired a new position in shares of Sonic Automotive during the 2nd quarter valued at $82,000. TFO Wealth Partners LLC raised its stake in shares of Sonic Automotive by 35,366.7% in the 4th quarter. TFO Wealth Partners LLC now owns 2,128 shares of the company’s stock worth $120,000 after buying an additional 2,122 shares in the last quarter. Finally, Point72 DIFC Ltd raised its stake in shares of Sonic Automotive by 6.9% in the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after buying an additional 187 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Company Profile

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.