Sonic Automotive (NYSE:SAH) Upgraded at Zacks Research

Zacks Research upgraded shares of Sonic Automotive (NYSE:SAH) from a hold rating to a strong-buy rating in a report published on Tuesday morning,Zacks.com reports.

SAH has been the topic of a number of other reports. Benchmark increased their price target on shares of Sonic Automotive from $80.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, September 18th. Stephens cut shares of Sonic Automotive from an “overweight” rating to an “equal weight” rating and upped their price objective for the stock from $72.00 to $82.00 in a research report on Thursday, July 17th. Morgan Stanley upped their price objective on shares of Sonic Automotive from $60.00 to $72.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 14th. Bank of America upped their price objective on shares of Sonic Automotive from $80.00 to $94.00 and gave the stock a “buy” rating in a research report on Monday, June 16th. Finally, Wall Street Zen cut shares of Sonic Automotive from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 21st. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $83.14.

Sonic Automotive Trading Down 4.4%

Shares of Sonic Automotive stock opened at $75.05 on Tuesday. Sonic Automotive has a 12-month low of $52.00 and a 12-month high of $89.62. The company has a market cap of $2.56 billion, a price-to-earnings ratio of 16.68 and a beta of 0.98. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 1.78. The company’s 50-day moving average price is $78.60 and its 200-day moving average price is $72.07.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Thursday, July 24th. The company reported $2.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.63 by $0.56. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.66 billion. During the same period in the prior year, the firm posted $1.47 earnings per share. The company’s revenue for the quarter was up 5.9% on a year-over-year basis. On average, equities analysts expect that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be given a dividend of $0.38 per share. The ex-dividend date is Monday, September 15th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.35. This represents a $1.52 dividend on an annualized basis and a yield of 2.0%. Sonic Automotive’s dividend payout ratio (DPR) is 33.78%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of SAH. Northwestern Mutual Wealth Management Co. grew its position in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after acquiring an additional 397 shares during the last quarter. Quarry LP bought a new position in Sonic Automotive during the first quarter valued at approximately $84,000. Raymond James Financial Inc. bought a new position in shares of Sonic Automotive in the second quarter worth approximately $168,000. Entropy Technologies LP bought a new position in shares of Sonic Automotive in the second quarter worth approximately $208,000. Finally, Creative Planning bought a new position in shares of Sonic Automotive in the second quarter worth approximately $213,000. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Company Profile

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.