Sonic Automotive (NYSE:SAH) Given “Buy” Rating at Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Sonic Automotive (NYSE:SAH) in a research report sent to investors on Tuesday morning,Benzinga reports. The brokerage currently has a $90.00 price objective on the stock.

Several other equities research analysts have also recently commented on SAH. Bank of America initiated coverage on Sonic Automotive in a report on Wednesday, March 4th. They issued a “neutral” rating for the company. Zacks Research lowered Sonic Automotive from a “hold” rating to a “strong sell” rating in a research note on Monday, March 2nd. Stephens dropped their target price on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating for the company in a report on Thursday, February 19th. JPMorgan Chase & Co. cut their target price on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research note on Friday, January 16th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research report on Friday. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Sonic Automotive presently has a consensus rating of “Hold” and a consensus price target of $77.50.

Sonic Automotive Stock Performance

NYSE:SAH opened at $68.69 on Tuesday. The company has a market cap of $2.31 billion, a P/E ratio of 20.26, a P/E/G ratio of 2.02 and a beta of 0.91. Sonic Automotive has a twelve month low of $52.00 and a twelve month high of $89.62. The company’s 50-day moving average price is $62.15 and its 200-day moving average price is $65.41. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data 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). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The business had revenue of $3.87 billion for the quarter, compared to analysts’ expectations of $3.94 billion. During the same period in the prior year, the company posted $1.51 EPS. The firm’s revenue was down .6% on a year-over-year basis. On average, sell-side analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 13th will be issued a $0.38 dividend. The ex-dividend date is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a yield of 2.2%. Sonic Automotive’s dividend payout ratio is currently 44.84%.

Insiders Place Their Bets

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 48,540 shares of the business’s stock in a transaction on Friday, February 13th. The stock was bought at an average price of $59.92 per share, with a total value of $2,908,516.80. Following the completion of the purchase, the insider directly owned 5,088,519 shares in the company, valued at $304,904,058.48. The trade was a 0.96% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders purchased 100,000 shares of company stock valued at $5,994,472 in the last ninety days. Corporate insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in Sonic Automotive by 6.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock valued at $125,278,000 after buying an additional 96,836 shares during the period. State Street Corp lifted its position in Sonic Automotive by 9.8% in the fourth quarter. State Street Corp now owns 701,133 shares of the company’s stock valued at $43,623,000 after buying an additional 62,426 shares during the last quarter. Invesco Ltd. boosted its stake in Sonic Automotive by 11.9% during the fourth quarter. Invesco Ltd. now owns 510,963 shares of the company’s stock worth $31,608,000 after buying an additional 54,455 shares during the period. Millennium Management LLC increased its position in shares of Sonic Automotive by 20.5% during the third quarter. Millennium Management LLC now owns 383,117 shares of the company’s stock valued at $29,151,000 after acquiring an additional 65,266 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Sonic Automotive by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 375,034 shares of the company’s stock valued at $23,204,000 after acquiring an additional 4,443 shares during the last quarter. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

About Sonic Automotive

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.