Sonic Automotive (NYSE:SAH) Share Price Passes Above Two Hundred Day Moving Average – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH)’s stock price crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $68.53 and traded as high as $84.37. Sonic Automotive shares last traded at $82.60, with a volume of 187,399 shares traded.

Analysts Set New Price Targets

A number of research analysts recently commented on SAH shares. Barclays upped their target price on Sonic Automotive from $67.00 to $77.00 and gave the company an “equal weight” rating in a research note on Tuesday, May 5th. JPMorgan Chase & Co. boosted their price target on shares of Sonic Automotive from $67.00 to $77.00 and gave the company an “underweight” rating in a report on Thursday, May 7th. Bank of America assumed coverage on shares of Sonic Automotive in a research note on Wednesday, March 4th. They issued a “neutral” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and set a $90.00 price objective on shares of Sonic Automotive in a report on Tuesday, March 31st. Finally, Weiss Ratings upgraded shares of Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $81.62.

Sonic Automotive Stock Performance

The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 26.31, a PEG ratio of 1.92 and a beta of 0.88. The stock has a fifty day moving average price of $78.37 and a 200-day moving average price of $68.53.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The business had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the previous year, the firm earned $1.48 EPS. Sonic Automotive’s quarterly revenue was up 1.0% on a year-over-year basis. As a group, analysts anticipate that Sonic Automotive, Inc. will post 6.92 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Monday, June 15th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. Sonic Automotive’s dividend payout ratio (DPR) is 52.23%.

Insider Activity at Sonic Automotive

In other news, President Jeff Dyke sold 35,114 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the sale, the president owned 543,668 shares of the company’s stock, valued at approximately $46,331,386.96. This represents a 6.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 100,000 shares of company stock valued at $8,408,160. 43.68% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sonic Automotive

Several institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. boosted its position in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after buying an additional 397 shares in the last quarter. Camelot Portfolios LLC acquired a new stake in shares of Sonic Automotive during the fourth quarter worth approximately $41,000. Torren Management LLC acquired a new stake in shares of Sonic Automotive during the fourth quarter worth approximately $50,000. Aster Capital Management DIFC Ltd bought a new position in shares of Sonic Automotive in the third quarter valued at approximately $63,000. Finally, National Bank of Canada FI acquired a new position in shares of Sonic Automotive in the 3rd quarter worth approximately $78,000. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.