Sonic Automotive, Inc. (NYSE:SAH) Given Average Recommendation of “Moderate Buy” by Analysts

Sonic Automotive, Inc. (NYSE:SAH) has been assigned a consensus rating of “Moderate Buy” from the five ratings firms that are presently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $67.40.

SAH has been the topic of a number of recent analyst reports. Stephens began coverage on Sonic Automotive in a report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target on the stock. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their target price for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Bank of America reduced their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, October 14th. JPMorgan Chase & Co. lifted their price objective on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 10th. Finally, Needham & Company LLC increased their target price on shares of Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a research report on Friday, October 25th.

Sonic Automotive Stock Performance

NYSE SAH opened at $57.28 on Tuesday. The company has a fifty day moving average price of $57.38 and a 200-day moving average price of $56.97. The firm has a market cap of $1.96 billion, a price-to-earnings ratio of 10.19 and a beta of 1.61. The company has a debt-to-equity ratio of 1.87, a current ratio of 1.11 and a quick ratio of 0.35. Sonic Automotive has a 1 year low of $47.82 and a 1 year high of $64.68.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Thursday, October 24th. The company reported $1.26 earnings per share (EPS) 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 firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. During the same period in the previous year, the company posted $2.02 earnings per share. The company’s revenue for the quarter was down 4.2% on a year-over-year basis. As a group, equities research analysts predict that Sonic Automotive will post 5.62 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.44%. The ex-dividend date is Friday, December 13th. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s dividend payout ratio (DPR) is currently 24.91%.

Institutional Trading of Sonic Automotive

Hedge funds and other institutional investors have recently modified their holdings of the business. Allspring Global Investments Holdings LLC purchased a new stake in Sonic Automotive during the 1st quarter worth about $30,000. Innealta Capital LLC purchased a new position in Sonic Automotive during the 2nd quarter valued at about $41,000. AM Squared Ltd bought a new stake in shares of Sonic Automotive during the second quarter valued at about $82,000. Point72 DIFC Ltd lifted its holdings in shares of Sonic Automotive by 6.9% in the second 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. Finally, Intech Investment Management LLC bought a new position in shares of Sonic Automotive in the second quarter valued at approximately $228,000. Institutional investors 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.