Sonic Automotive (NYSE:SAH) Earns Buy Rating from Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Sonic Automotive (NYSE:SAH) in a research note released on Thursday morning,Benzinga reports. The brokerage currently has a $74.00 target price on the stock.

Several other equities analysts have also weighed in on SAH. Bank of America dropped their price objective on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Seaport Res Ptn upgraded shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. Finally, Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th. Two investment analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $67.20.

Sonic Automotive Price Performance

NYSE:SAH opened at $68.39 on Thursday. The stock’s 50-day simple moving average is $65.64 and its 200 day simple moving average is $60.44. Sonic Automotive has a 52-week low of $47.82 and a 52-week high of $70.88. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11. The company has a market cap of $2.34 billion, a P/E ratio of 12.17 and a beta of 1.67.

Sonic Automotive (NYSE:SAH) last released 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). The business had revenue of $3.49 billion during the quarter, compared to analyst estimates of $3.55 billion. Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The business’s quarterly revenue was down 4.2% on a year-over-year basis. During the same period in the previous year, the business earned $2.02 earnings per share. As a group, sell-side analysts forecast that Sonic Automotive will post 5.6 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th were issued a dividend of $0.35 per share. The ex-dividend date was Friday, December 13th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a dividend yield of 2.05%. Sonic Automotive’s dividend payout ratio (DPR) is currently 24.91%.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Point72 Asia Singapore Pte. Ltd. raised its stake in Sonic Automotive by 100.3% in the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 1,196 shares of the company’s stock valued at $70,000 after purchasing an additional 599 shares in the last quarter. Point72 DIFC Ltd lifted its holdings in shares of Sonic Automotive by 6.9% during the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after acquiring an additional 187 shares during the period. Intech Investment Management LLC bought a new position in Sonic Automotive in the second quarter valued at approximately $228,000. SG Americas Securities LLC acquired a new stake in shares of Sonic Automotive in the 4th quarter valued at $244,000. Finally, Inspire Investing LLC raised its holdings in shares of Sonic Automotive by 3.4% during the 2nd quarter. Inspire Investing LLC now owns 6,475 shares of the company’s stock worth $353,000 after buying an additional 211 shares in the last quarter. 46.92% of the stock is owned by institutional investors and hedge funds.

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.