Sonic Automotive, Inc. (NYSE:SAH) Receives $77.50 Average Target Price from Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH) have earned a consensus rating of “Hold” from the ten analysts that are presently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $77.50.

A number of research analysts have recently weighed in on SAH shares. Barclays set a $67.00 price objective on Sonic Automotive in a research report on Monday, February 23rd. Stephens dropped their price objective on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating for the company in a research note on Thursday, February 19th. Bank of America started coverage on shares of Sonic Automotive in a research report on Wednesday, March 4th. They set a “neutral” rating on the stock. JPMorgan Chase & Co. lowered their target price on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a report on Friday, January 16th. Finally, Wall Street Zen cut shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th.

Sonic Automotive Price Performance

Shares of NYSE:SAH opened at $59.97 on Friday. The company has a market capitalization of $2.01 billion, a P/E ratio of 17.69, a P/E/G ratio of 1.78 and a beta of 0.91. Sonic Automotive has a 1-year low of $52.00 and a 1-year high of $89.62. The firm’s 50 day simple moving average is $61.78 and its two-hundred day simple moving average is $66.22. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.09 and a quick ratio of 0.32.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.01). The business had revenue of $3.87 billion for the quarter, compared to the consensus estimate of $3.94 billion. Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The firm’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period last year, the business posted $1.51 EPS. Research analysts expect that Sonic Automotive will post 6.14 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be given a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.5%. Sonic Automotive’s dividend payout ratio (DPR) is 44.84%.

Insider Buying and Selling at Sonic Automotive

In other news, major shareholder Paul P. Rusnak purchased 11,481 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average price of $59.95 per share, for a total transaction of $688,285.95. Following the completion of the acquisition, the insider owned 5,100,000 shares of the company’s stock, valued at approximately $305,745,000. This trade represents a 0.23% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders have purchased a total of 100,000 shares of company stock worth $5,994,472 over the last ninety days. Insiders own 43.68% of the company’s stock.

Institutional Trading of Sonic Automotive

A number of hedge funds have recently added to or reduced their stakes in SAH. Mitsubishi UFJ Trust & Banking Corp raised its holdings in shares of Sonic Automotive by 1.2% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after purchasing an additional 190 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Sonic Automotive by 1.9% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock valued at $924,000 after purchasing an additional 273 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in Sonic Automotive by 8.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after buying an additional 284 shares during the period. CWM LLC raised its stake in Sonic Automotive by 11.3% in the fourth quarter. CWM LLC now owns 2,858 shares of the company’s stock worth $177,000 after buying an additional 291 shares in the last quarter. Finally, Creative Planning raised its stake in Sonic Automotive by 12.4% in the third quarter. Creative Planning now owns 3,000 shares of the company’s stock worth $228,000 after buying an additional 332 shares in the last quarter. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.