Sonic Automotive (NYSE:SAH) Raised to Buy at Bank of America

Bank of America upgraded shares of Sonic Automotive (NYSE:SAH) from an underperform rating to a buy rating in a research report sent to investors on Friday, Marketbeat Ratings reports. The brokerage currently has $68.00 price target on the stock, up from their previous price target of $55.00.

Other equities analysts have also issued reports about the stock. StockNews.com lowered shares of Sonic Automotive from a buy rating to a hold rating in a research note on Thursday, January 11th. Morgan Stanley increased their price target on shares of Sonic Automotive from $35.00 to $40.00 and gave the company an underweight rating in a research note on Thursday, February 29th. Finally, TheStreet upgraded shares of Sonic Automotive from a c+ rating to a b rating in a research report on Wednesday, March 6th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of Hold and an average price target of $56.00.

Sonic Automotive Trading Up 9.9 %

NYSE SAH opened at $62.30 on Friday. The firm’s 50-day moving average is $52.53 and its two-hundred day moving average is $52.12. Sonic Automotive has a 12 month low of $39.02 and a 12 month high of $64.68. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.10 and a quick ratio of 0.41. The stock has a market capitalization of $2.12 billion, a P/E ratio of 12.77 and a beta of 1.82.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, April 25th. The company reported $1.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.13. The business had revenue of $3.40 billion for the quarter, compared to analysts’ expectations of $3.45 billion. Sonic Automotive had a net margin of 1.21% and a return on equity of 27.69%. The business’s quarterly revenue was down 2.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.33 earnings per share. On average, sell-side analysts anticipate that Sonic Automotive will post 5.62 earnings per share for the current year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 15th. Investors of record on Friday, June 14th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.93%. The ex-dividend date of this dividend is Friday, June 14th. Sonic Automotive’s dividend payout ratio is presently 24.59%.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently modified their holdings of SAH. Allspring Global Investments Holdings LLC acquired a new stake in shares of Sonic Automotive during the first quarter worth $30,000. TFO Wealth Partners LLC lifted its holdings in shares of Sonic Automotive by 35,366.7% during the fourth quarter. TFO Wealth Partners LLC now owns 2,128 shares of the company’s stock worth $120,000 after purchasing an additional 2,122 shares during the period. SG Americas Securities LLC acquired a new stake in shares of Sonic Automotive during the third quarter worth $135,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Sonic Automotive by 16.6% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,132 shares of the company’s stock valued at $176,000 after acquiring an additional 447 shares during the period. Finally, Quest Partners LLC acquired a new stake in Sonic Automotive in the fourth quarter valued at $185,000. 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.