Sonic Automotive, Inc. (NYSE:SAH) Receives Average Rating of “Hold” from Brokerages

Sonic Automotive, Inc. (NYSE:SAH) has received an average rating of “Hold” from the eleven analysts that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, six have given a hold recommendation and four have issued a buy recommendation on the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $81.6250.

SAH has been the topic of a number of analyst reports. UBS Group initiated coverage on Sonic Automotive in a research note on Wednesday, May 27th. They issued a “buy” rating and a $90.00 price target on the stock. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research note on Tuesday, March 31st. Weiss Ratings raised Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 18th. Finally, Bank of America began coverage on Sonic Automotive in a research note on Wednesday, March 4th. They issued a “neutral” rating on the stock.

Sonic Automotive Price Performance

Shares of Sonic Automotive stock opened at $84.08 on Friday. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The business’s 50 day simple moving average is $78.74 and its two-hundred day simple moving average is $68.64. The stock has a market capitalization of $2.66 billion, a P/E ratio of 26.78, a price-to-earnings-growth ratio of 1.94 and a beta of 0.88. Sonic Automotive has a one year low of $54.11 and a one year high of $89.62.

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

Sonic Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be given a $0.41 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.38. Sonic Automotive’s dividend payout ratio is 52.23%.

Insider Buying and Selling at Sonic Automotive

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

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Sonic Automotive by 6.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock worth $125,278,000 after buying an additional 96,836 shares during the last quarter. Tudor Investment Corp ET AL grew its position in shares of Sonic Automotive by 41.2% in the 3rd quarter. Tudor Investment Corp ET AL now owns 183,522 shares of the company’s stock worth $13,964,000 after buying an additional 53,510 shares during the last quarter. Picton Mahoney Asset Management bought a new stake in shares of Sonic Automotive in the 3rd quarter worth approximately $779,000. BNP Paribas Financial Markets grew its position in shares of Sonic Automotive by 70.8% in the 4th quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after buying an additional 75,125 shares during the last quarter. Finally, ProShare Advisors LLC grew its position in shares of Sonic Automotive by 22.3% in the 4th quarter. ProShare Advisors LLC now owns 94,898 shares of the company’s stock worth $5,870,000 after buying an additional 17,286 shares during the last quarter. 46.92% of the stock is currently 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.