Sonic Automotive (NYSE:SAH) Reaches New 1-Year High – Time to Buy?

Sonic Automotive, Inc. (NYSE:SAH)’s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $66.54 and last traded at $66.35, with a volume of 3838 shares traded. The stock had previously closed at $66.53.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on SAH. Stephens began coverage on 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 target price on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, October 14th. 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. Needham & Company LLC lifted 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. Finally, Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and raised their price target for the company from $40.00 to $58.00 in a report on Wednesday, September 25th. Three analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, Sonic Automotive has a consensus rating of “Moderate Buy” and a consensus price target of $67.40.

Sonic Automotive Trading Down 2.8 %

The company has a market cap of $2.21 billion, a PE ratio of 11.83 and a beta of 1.61. The business has a 50 day simple moving average of $57.41 and a two-hundred day simple moving average of $57.48. The company has a current ratio of 1.11, a quick ratio of 0.35 and a debt-to-equity ratio of 1.87.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, October 24th. The company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17). Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The business had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same period in the prior year, the company earned $2.02 EPS. The company’s revenue for the quarter was down 4.2% compared to the same quarter last year. On average, analysts forecast that Sonic Automotive, Inc. will post 5.74 EPS 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. Investors of record on Friday, December 13th will be given a $0.35 dividend. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a dividend yield of 2.16%. The ex-dividend date of this dividend is Friday, December 13th. Sonic Automotive’s dividend payout ratio (DPR) is 24.91%.

Institutional Trading of Sonic Automotive

Several large investors have recently modified their holdings of the business. Intech Investment Management LLC grew its stake in shares of Sonic Automotive by 418.9% during the third quarter. Intech Investment Management LLC now owns 21,692 shares of the company’s stock valued at $1,269,000 after acquiring an additional 17,512 shares in the last quarter. Phocas Financial Corp. acquired a new position in Sonic Automotive in the third quarter worth about $3,645,000. MQS Management LLC acquired a new position in Sonic Automotive in the third quarter worth about $394,000. GSA Capital Partners LLP grew its stake in Sonic Automotive by 163.7% in the third quarter. GSA Capital Partners LLP now owns 32,235 shares of the company’s stock worth $1,885,000 after purchasing an additional 20,010 shares in the last quarter. Finally, Harbor Capital Advisors Inc. grew its stake in Sonic Automotive by 124.7% in the third quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock worth $3,239,000 after purchasing an additional 30,731 shares in the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.