Benchmark Forecasts Strong Price Appreciation for Sonic Automotive (NYSE:SAH) Stock

Key Points

• Benchmark has raised the price target for Sonic Automotive (NYSE:SAH) from $80.00 to $85.00, indicating an expected upside of 8.76% from the stock's previous close.
• Equities analysts remain divided on the stock, with ratings ranging from "Strong Buy" to "Sell," and an average target price of $80.57.
• In its recent quarterly report, Sonic Automotive exceeded earnings expectations with $2.19 earnings per share, up from $1.47 the previous year, reflecting a year-over-year revenue increase of 5.9%.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price objective lifted by equities research analysts at Benchmark from $80.00 to $85.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Benchmark's price target would indicate a potential upside of 8.76% from the stock's previous close.

A number of other equities analysts have also recently weighed in on the stock. Zacks Research cut shares of Sonic Automotive from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 22nd. Morgan Stanley lifted their price objective on shares of Sonic Automotive from $60.00 to $72.00 and gave the company an "equal weight" rating in a research note on Thursday, August 14th. Needham & Company LLC reaffirmed a "buy" rating and issued a $95.00 target price on shares of Sonic Automotive in a report on Wednesday, August 6th. Wall Street Zen downgraded shares of Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, Stephens downgraded shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and upped their price target for the company from $72.00 to $82.00 in a report on Thursday, July 17th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Sonic Automotive currently has an average rating of "Hold" and an average price target of $80.57.

Sonic Automotive Stock Performance

Sonic Automotive stock opened at $78.15 on Thursday. The company has a market capitalization of $2.67 billion, a PE ratio of 17.37 and a beta of 0.98. Sonic Automotive has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.24 and a current ratio of 1.03. The company has a 50 day moving average price of $79.44 and a 200-day moving average price of $71.58.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The company reported $2.19 earnings per share for the quarter, beating analysts' consensus estimates of $1.63 by $0.56. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.66 billion. During the same period in the previous year, the company earned $1.47 earnings per share. The business's quarterly revenue was up 5.9% compared to the same quarter last year. As a group, equities analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current year.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. increased its position in shares of Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock worth $35,000 after purchasing an additional 397 shares during the period. Quarry LP purchased a new position in shares of Sonic Automotive in the 1st quarter valued at approximately $84,000. Raymond James Financial Inc. bought a new stake in shares of Sonic Automotive in the 2nd quarter worth $168,000. Entropy Technologies LP purchased a new position in shares of Sonic Automotive in the second quarter valued at about $208,000. Finally, Creative Planning bought a new stake in Sonic Automotive during the second quarter worth approximately $213,000. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Company Profile

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.

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