Sonic Automotive, Inc. (NYSE:SAH) Receives Average Rating of "Hold" from Brokerages

Key Points

• Sonic Automotive has an average “Hold” rating from 10 analysts: four rate it a buy, four a hold, and two a sell. The average 12-month price target is $97.
• The company reported quarterly EPS of $1.82, beating estimates of $1.75, while revenue rose 7.6% year over year to $3.93 billion.
• Sonic Automotive declared a quarterly dividend of $0.41 per share, equivalent to $1.64 annually and a 2.6% yield. Institutional investors own approximately 46.9% of the company.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) has received an average rating of "Hold" from the ten brokerages that are presently covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $97.00.

A number of research analysts recently commented on the stock. Barclays lowered their price objective on shares of Sonic Automotive from $92.00 to $87.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 19th. Weiss Ratings lowered Sonic Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, September 16th. Stephens set a $89.00 price target on Sonic Automotive in a research report on Monday, July 13th. Needham & Company LLC boosted their price objective on Sonic Automotive from $90.00 to $139.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Finally, Bank of America upped their price objective on Sonic Automotive from $91.00 to $108.00 and gave the company a "buy" rating in a report on Thursday, July 9th.

Hedge Funds Weigh In On Sonic Automotive

Several large investors have recently made changes to their positions in the business. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Sonic Automotive during the second quarter valued at approximately $373,000. Ameritas Advisory Services LLC bought a new stake in Sonic Automotive during the second quarter worth approximately $88,000. Northwestern Mutual Wealth Management Co. grew its position in Sonic Automotive by 14.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company's stock worth $390,000 after buying an additional 582 shares during the last quarter. Denali Advisors LLC acquired a new position in Sonic Automotive in the second quarter worth approximately $4,799,000. Finally, Hsbc Holdings PLC increased its holdings in shares of Sonic Automotive by 106.2% in the second quarter. Hsbc Holdings PLC now owns 27,871 shares of the company's stock valued at $2,328,000 after buying an additional 14,352 shares in the last quarter. Institutional investors own 46.92% of the company's stock.

Sonic Automotive Price Performance

Shares of NYSE SAH opened at $62.79 on Tuesday. Sonic Automotive has a fifty-two week low of $54.11 and a fifty-two week high of $113.67. The firm's 50-day simple moving average is $76.95 and its 200 day simple moving average is $78.21. The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The stock has a market cap of $1.98 billion, a P/E ratio of 10.01, a P/E/G ratio of 1.01 and a beta of 0.92.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.75 by $0.07. The firm had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. Sonic Automotive's revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.19 EPS. Equities analysts expect that Sonic Automotive will post 6.92 EPS for the current year.

Sonic Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a $0.41 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.64 annualized dividend and a yield of 2.6%. Sonic Automotive's payout ratio is 26.16%.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.

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