Sonic Automotive (NYSE:SAH) Hits New 52-Week High Following Earnings Beat

Shares of Sonic Automotive, Inc. (NYSE:SAH) reached a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $60.88 and last traded at $60.88, with a volume of 128011 shares changing hands. The stock had previously closed at $56.67.

The company reported $1.36 EPS for the quarter, beating the consensus estimate of $1.23 by $0.13. The company had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $3.45 billion. Sonic Automotive had a net margin of 1.24% and a return on equity of 28.06%. The firm’s revenue was down 2.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.33 EPS.

Sonic Automotive Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, July 15th. Shareholders of record on Friday, June 14th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.20 dividend on an annualized basis and a yield of 1.92%. Sonic Automotive’s dividend payout ratio is currently 24.14%.

Analyst Ratings Changes

A number of brokerages have commented on SAH. StockNews.com downgraded shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Thursday, January 11th. TheStreet upgraded shares of Sonic Automotive from a “c+” rating to a “b” rating in a research note on Wednesday, March 6th. Morgan Stanley upped their target price on shares of Sonic Automotive from $35.00 to $40.00 and gave the stock an “underweight” rating in a research note on Thursday, February 29th. Finally, Bank of America upgraded shares of Sonic Automotive from an “underperform” rating to a “buy” rating and upped their target price for the stock from $55.00 to $68.00 in a research note on Friday. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat.com, Sonic Automotive currently has a consensus rating of “Hold” and an average price target of $56.00.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Westwood Holdings Group Inc. bought a new position in shares of Sonic Automotive during the fourth quarter valued at approximately $31,473,000. Charles Schwab Investment Management Inc. grew its position in Sonic Automotive by 4.4% during the third quarter. Charles Schwab Investment Management Inc. now owns 381,211 shares of the company’s stock valued at $18,207,000 after buying an additional 16,117 shares during the period. Jacobs Levy Equity Management Inc. grew its position in Sonic Automotive by 1,841.9% during the third quarter. Jacobs Levy Equity Management Inc. now owns 301,526 shares of the company’s stock valued at $14,401,000 after buying an additional 285,999 shares during the period. Schonfeld Strategic Advisors LLC grew its position in Sonic Automotive by 705.8% during the third quarter. Schonfeld Strategic Advisors LLC now owns 67,086 shares of the company’s stock valued at $3,204,000 after buying an additional 58,761 shares during the period. Finally, FMR LLC grew its position in Sonic Automotive by 2.0% during the third quarter. FMR LLC now owns 57,581 shares of the company’s stock valued at $2,750,000 after buying an additional 1,118 shares during the period. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Trading Up 10.0 %

The company has a market cap of $2.12 billion, a price-to-earnings ratio of 12.55 and a beta of 1.82. The company has a quick ratio of 0.41, a current ratio of 1.10 and a debt-to-equity ratio of 2.10. The company’s 50-day moving average is $52.53 and its 200 day moving average is $52.00.

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.