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 raised by equities researchers at Benchmark from $80.00 to $85.00 in a research report issued to clients and investors on Thursday, MarketBeat reports. The firm presently has a "buy" rating on the stock. Benchmark's price target would suggest a potential upside of 8.79% from the stock's previous close.

SAH has been the topic of a number of other research reports. Bank of America lifted their target price on shares of Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Stephens cut shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and boosted their price objective for the company from $72.00 to $82.00 in a research report on Thursday, July 17th. JPMorgan Chase & Co. restated an "underweight" rating and issued a $72.00 price objective (up previously from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Morgan Stanley boosted 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 report on Thursday, August 14th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $95.00 price target on shares of Sonic Automotive in a research report on Wednesday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Sonic Automotive presently has an average rating of "Hold" and a consensus target price of $80.57.

Sonic Automotive Stock Down 0.6%

Shares of SAH traded down $0.47 during midday trading on Thursday, hitting $78.14. The stock had a trading volume of 41,227 shares, compared to its average volume of 222,857. The company has a 50 day simple moving average of $79.09 and a two-hundred day simple moving average of $71.83. Sonic Automotive has a twelve month low of $52.00 and a twelve month high of $89.62. The firm has a market cap of $2.67 billion, a price-to-earnings ratio of 17.33 and a beta of 0.98. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings results 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. The company had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.66 billion. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.47 earnings per share. On average, analysts anticipate that Sonic Automotive will post 6.14 EPS for the current year.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently bought and sold shares of SAH. Northwestern Mutual Wealth Management Co. raised its stake in shares of Sonic Automotive by 992.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock worth $35,000 after purchasing an additional 397 shares in the last quarter. Quarry LP acquired a new position in Sonic Automotive in the first quarter valued at about $84,000. Raymond James Financial Inc. bought a new stake in shares of Sonic Automotive in the second quarter valued at about $168,000. Entropy Technologies LP bought a new stake 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 about $213,000. 46.92% of the stock is owned by hedge funds and other 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.