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

Shares of Sonic Automotive, Inc. (NYSE:SAHGet Rating) have received an average recommendation of “Hold” from the six analysts that are currently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, two have given a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $52.33.

Several brokerages have commented on SAH. Morgan Stanley increased their price target on shares of Sonic Automotive from $33.00 to $35.00 and gave the company an “underweight” rating in a research note on Thursday, September 1st. StockNews.com started coverage on shares of Sonic Automotive in a research note on Wednesday, October 12th. They issued a “hold” rating on the stock. JPMorgan Chase & Co. upgraded shares of Sonic Automotive from a “neutral” rating to an “overweight” rating and set a $60.00 target price on the stock in a research report on Thursday, October 6th. Benchmark lowered their target price on shares of Sonic Automotive from $71.00 to $62.00 and set a “buy” rating on the stock in a research report on Monday, October 31st. Finally, Bank of America lowered shares of Sonic Automotive from a “buy” rating to an “underperform” rating in a research report on Friday, September 9th.

Insider Buying and Selling

In related news, CEO David Bruton Smith sold 54,670 shares of the stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $55.60, for a total transaction of $3,039,652.00. Following the completion of the sale, the chief executive officer now directly owns 467,856 shares of the company’s stock, valued at $26,012,793.60. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 36.07% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently modified their holdings of SAH. Point72 Hong Kong Ltd acquired a new stake in Sonic Automotive in the first quarter valued at $26,000. Counterpoint Mutual Funds LLC acquired a new stake in Sonic Automotive in the second quarter valued at $96,000. SeaCrest Wealth Management LLC acquired a new stake in Sonic Automotive in the second quarter valued at $97,000. UBS Group AG lifted its holdings in Sonic Automotive by 353.4% in the third quarter. UBS Group AG now owns 2,970 shares of the company’s stock valued at $129,000 after acquiring an additional 2,315 shares during the period. Finally, EMC Capital Management lifted its holdings in Sonic Automotive by 51.7% in the second quarter. EMC Capital Management now owns 4,044 shares of the company’s stock valued at $148,000 after acquiring an additional 1,378 shares during the period. 57.10% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Stock Performance

Shares of Sonic Automotive stock opened at $50.88 on Tuesday. The firm has a market capitalization of $2.00 billion, a P/E ratio of 5.56 and a beta of 1.90. Sonic Automotive has a 52 week low of $34.17 and a 52 week high of $59.19. The company has a quick ratio of 0.33, a current ratio of 1.02 and a debt-to-equity ratio of 1.51. The firm’s 50 day moving average is $45.87 and its two-hundred day moving average is $44.61.

Sonic Automotive (NYSE:SAHGet Rating) last announced its quarterly earnings results on Thursday, October 27th. The company reported $2.23 EPS for the quarter, missing the consensus estimate of $2.47 by ($0.24). The company had revenue of $3.45 billion during the quarter, compared to analysts’ expectations of $3.67 billion. Sonic Automotive had a net margin of 2.71% and a return on equity of 35.42%. The business’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.96 earnings per share. Research analysts forecast that Sonic Automotive will post 9.56 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 13th. Investors of record on Thursday, December 15th will be issued a dividend of $0.28 per share. The ex-dividend date of this dividend is Wednesday, December 14th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.25. This represents a $1.12 annualized dividend and a dividend yield of 2.20%. Sonic Automotive’s dividend payout ratio (DPR) is currently 10.93%.

About Sonic Automotive

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Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in two segments, Franchised Dealerships and EchoPark. 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.

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Analyst Recommendations for Sonic Automotive (NYSE:SAH)

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