Sonic Automotive, Inc. (NYSE:SAH) Receives $97.89 Average Target Price from Brokerages

Sonic Automotive, Inc. (NYSE:SAH) has earned a consensus recommendation of “Hold” from the eleven brokerages that are covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and six have issued a buy recommendation on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $97.3333.

A number of research analysts have recently issued reports on SAH shares. Weiss Ratings raised Sonic Automotive from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, August 6th. Morgan Stanley lowered Sonic Automotive from an “equal weight” rating to an “underweight” rating and set a $72.00 target price for the company. in a research report on Friday, August 7th. Stephens set a $89.00 target price on shares of Sonic Automotive in a research note on Monday, July 13th. Bank of America lifted their price target on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Finally, Seaport Research Partners cut shares of Sonic Automotive from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $185.00 to $205.00 in a report on Friday, July 17th.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the completion of the transaction, the president directly owned 543,668 shares in the company, valued at $46,331,386.96. This represents a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 100,000 shares of company stock valued at $8,408,160. Corporate insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. raised its position in Sonic Automotive by 14.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company’s stock valued at $390,000 after purchasing an additional 582 shares during the period. Denali Advisors LLC purchased a new stake in Sonic Automotive during the 2nd quarter valued at $4,799,000. Hsbc Holdings PLC lifted its position in Sonic Automotive by 106.2% in the second quarter. Hsbc Holdings PLC now owns 27,871 shares of the company’s stock worth $2,328,000 after buying an additional 14,352 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in Sonic Automotive during the second quarter worth $2,951,000. Finally, Foster & Motley Inc. bought a new position in Sonic Automotive during the second quarter valued at $418,000. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Stock Up 0.2%

Shares of NYSE:SAH opened at $77.94 on Monday. The stock has a market capitalization of $2.46 billion, a P/E ratio of 12.43, a price-to-earnings-growth ratio of 1.24 and a beta of 0.86. The stock’s 50-day moving average price is $88.06 and its 200-day moving average price is $75.97. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88. Sonic Automotive has a 12-month low of $54.11 and a 12-month high of $113.67.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.07. The company had revenue of $3.93 billion for the quarter, compared to analysts’ expectations of $3.78 billion. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. Sonic Automotive’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.19 earnings per share. On average, equities analysts anticipate that Sonic Automotive will post 6.95 earnings per share for the current year.

Sonic Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.1%. Sonic Automotive’s payout ratio is presently 26.16%.

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.