Sonic Automotive Inc. (SAH) Rating Increased to Hold at Zacks Investment Research
According to Zacks, “Sonic Automotive is poised to benefit from capital deployment strategies and different initiatives undertaken to boost its performance. The company’s earnings per share are expected to increase in 2016. However, Sonic Automotive’s extensive merchandise inventory raises concerns. Moreover, a highly competitive industry and fluctuations in foreign exchange rate remain headwinds. Sonic Automotive’s earnings estimates have been stable lately. The company has a mixed record of earnings surprises in recent quarters.”
Sonic Automotive (NYSE:SAH) opened at 19.20 on Monday. The stock’s 50 day moving average price is $17.64 and its 200-day moving average price is $17.60. Sonic Automotive has a 12-month low of $15.68 and a 12-month high of $25.77. The stock has a market capitalization of $872.58 million, a PE ratio of 9.77 and a beta of 1.81.
Sonic Automotive (NYSE:SAH) last posted its quarterly earnings results on Tuesday, July 26th. The company reported $0.50 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.50. Sonic Automotive had a return on equity of 14.65% and a net margin of 0.99%. The firm had revenue of $2.38 billion for the quarter, compared to the consensus estimate of $2.48 billion. During the same period in the previous year, the business earned $0.46 earnings per share. The company’s revenue for the quarter was down 1.7% compared to the same quarter last year. Analysts expect that Sonic Automotive will post $2.10 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Thursday, September 15th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Tuesday, September 13th. This represents a $0.20 dividend on an annualized basis and a yield of 1.04%. Sonic Automotive’s payout ratio is 10.26%.
In other news, insider O Bruton Smith bought 50,000 shares of the firm’s stock in a transaction on Wednesday, August 24th. The shares were bought at an average cost of $16.83 per share, for a total transaction of $841,500.00. Following the completion of the transaction, the insider now owns 525,242 shares in the company, valued at $8,839,822.86. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 29.32% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio increased its stake in Sonic Automotive by 16.6% in the second quarter. Public Employees Retirement System of Ohio now owns 7,301 shares of the company’s stock worth $125,000 after buying an additional 1,041 shares during the last quarter. Schwab Charles Investment Management Inc. increased its stake in Sonic Automotive by 5.7% in the second quarter. Schwab Charles Investment Management Inc. now owns 252,266 shares of the company’s stock worth $4,317,000 after buying an additional 13,506 shares during the last quarter. Legal & General Group Plc increased its stake in Sonic Automotive by 25.6% in the second quarter. Legal & General Group Plc now owns 52,757 shares of the company’s stock worth $900,000 after buying an additional 10,759 shares during the last quarter. FDx Advisors Inc. increased its stake in Sonic Automotive by 11.3% in the second quarter. FDx Advisors Inc. now owns 11,903 shares of the company’s stock worth $204,000 after buying an additional 1,211 shares during the last quarter. Finally, Point72 Asset Management L.P. purchased a new stake in Sonic Automotive during the second quarter worth approximately $1,495,000. Institutional investors own 65.88% of the company’s stock.
Sonic Automotive Company Profile
Sonic Automotive, Inc is an automotive retailer in the United States. The Company’s operating segments include Franchised Dealerships and EchoPark. The Company’s Franchised Dealerships segment consists of traditional retail automotive franchises that sell new and used vehicles, replacement parts and vehicle repair and maintenance services, and finance and insurance products.
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