Sonic Automotive (NYSE:SAH) Shares Up 6.6% Following Analyst Upgrade

Sonic Automotive, Inc. (NYSE:SAH) rose 6.6% on Wednesday after Barclays raised their price target on the stock from $77.00 to $92.00. Barclays currently has an equal weight rating on the stock. Sonic Automotive traded as high as $97.46 and last traded at $98.4660. Approximately 90,588 shares changed hands during trading, a decline of 67% from the average session volume of 277,802 shares. The stock had previously closed at $92.38.

Several other research analysts also recently weighed in on the company. UBS Group increased their price target on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Citigroup boosted their price objective on Sonic Automotive from $82.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, May 11th. Zacks Research raised shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Bank of America increased their target price on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $90.00 target price on shares of Sonic Automotive in a research note on Tuesday, March 31st. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Sonic Automotive has a consensus rating of “Hold” and an average price target of $90.67.

Insider Buying and Selling at Sonic Automotive

In related news, President Jeff Dyke sold 50,000 shares of the business’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $82.97, for a total transaction of $4,148,500.00. Following the sale, the president directly owned 111,622 shares in the company, valued at approximately $9,261,277.34. The trade was a 30.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 100,000 shares of company stock valued at $8,408,160 in the last three months. 43.68% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of 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 buying an additional 397 shares during the period. Camelot Portfolios LLC purchased a new stake in shares of Sonic Automotive in the fourth quarter worth about $41,000. Torren Management LLC bought a new position in shares of Sonic Automotive in the fourth quarter valued at approximately $50,000. National Bank of Canada FI bought a new position in shares of Sonic Automotive in the third quarter valued at approximately $78,000. Finally, State of Wyoming purchased a new position in Sonic Automotive during the first quarter valued at approximately $79,000. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive Trading Up 2.9%

The firm’s 50 day moving average is $83.28 and its 200 day moving average is $71.12. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The company has a market cap of $3.24 billion, a PE ratio of 32.68, a PEG ratio of 1.53 and a beta of 0.89.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.22. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The business had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the prior year, the company posted $1.48 EPS. The business’s revenue for the quarter was up 1.0% compared to the same quarter last year. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 6.94 earnings per share for the current year.

Sonic Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, June 15th were given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.6%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date was Monday, June 15th. Sonic Automotive’s dividend payout ratio (DPR) is 52.23%.

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.