Sonic Automotive (NYSE:SAH) Hits New 1-Year High Following Analyst Upgrade

Sonic Automotive, Inc. (NYSE:SAH) shares hit a new 52-week high on Thursday 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 $100.81 and last traded at $99.79, with a volume of 378264 shares. The stock had previously closed at $92.38.

Several other research firms also recently commented on SAH. Citigroup upped 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. Stephens set a $89.00 target price on Sonic Automotive in a report on Monday. JPMorgan Chase & Co. cut their price target on Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating for the company in a research note on Monday, July 13th. Morgan Stanley set a $72.00 price target on Sonic Automotive in a report on Thursday, May 7th. Finally, Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $90.67.

Insider Transactions at Sonic Automotive

In related news, President Jeff Dyke sold 50,000 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the sale, the president owned 111,622 shares in the company, valued at $9,261,277.34. This trade represents a 30.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock worth $8,408,160 over the last three months. Corporate insiders own 43.68% of the company’s stock.

Institutional Trading of Sonic Automotive

Several hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its holdings in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after acquiring an additional 397 shares during the period. Camelot Portfolios LLC purchased a new position in Sonic Automotive in the fourth quarter worth $41,000. Torren Management LLC acquired a new stake in Sonic Automotive in the fourth quarter valued at $50,000. National Bank of Canada FI acquired a new stake in Sonic Automotive in the third quarter valued at $78,000. Finally, State of Wyoming purchased a new stake in shares of Sonic Automotive during the 1st quarter worth $79,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Stock Performance

The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93. The firm has a market capitalization of $3.17 billion, a price-to-earnings ratio of 31.95, a PEG ratio of 1.57 and a beta of 0.89. The stock’s 50 day moving average price is $83.66 and its two-hundred day moving average price is $71.32.

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

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were paid a dividend of $0.41 per share. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.64 annualized dividend and a dividend yield of 1.6%. Sonic Automotive’s dividend payout ratio is presently 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.