Janney Montgomery Scott LLC Makes New $2.20 Million Investment in Sonic Automotive, Inc. $SAH

Key Points

• Janney Montgomery Scott LLC made a new investment in Sonic Automotive, purchasing 27,545 shares worth approximately $2.20 million, representing about 0.08% of the company's shares.
• Sonic Automotive recently reported better-than-expected quarterly earnings, with earnings per share of $2.19 that surpassed analysts' estimates of $1.63, and revenue of $3.66 billion for the quarter.
• The company has increased its quarterly dividend from $0.35 to $0.38, resulting in an annualized dividend yield of 2.2%.

Janney Montgomery Scott LLC bought a new position in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 27,545 shares of the company's stock, valued at approximately $2,202,000. Janney Montgomery Scott LLC owned 0.08% of Sonic Automotive at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Quarry LP purchased a new position in shares of Sonic Automotive in the first quarter valued at approximately $84,000. Cetera Investment Advisers acquired a new stake in Sonic Automotive in the first quarter valued at approximately $218,000. Eisler Capital Management Ltd. acquired a new stake in Sonic Automotive in the first quarter valued at approximately $219,000. Aristeia Capital L.L.C. acquired a new stake in Sonic Automotive in the first quarter valued at approximately $238,000. Finally, Harrell Investment Partners LLC acquired a new stake in Sonic Automotive in the second quarter valued at approximately $240,000. Hedge funds and other institutional investors own 46.92% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $72.00 target price (up previously from $65.00) on shares of Sonic Automotive in a report on Thursday, July 17th. Benchmark raised their target price on shares of Sonic Automotive from $80.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, September 18th. Stephens cut shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their target price for the company from $72.00 to $82.00 in a report on Thursday, July 17th. Wall Street Zen cut shares of Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, Bank of America raised their target price on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a report on Monday, June 16th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $83.14.

Sonic Automotive Trading Down 2.8%

NYSE SAH opened at $70.45 on Friday. Sonic Automotive, Inc. has a 12 month low of $52.00 and a 12 month high of $89.62. The company has a 50-day moving average of $78.30 and a 200-day moving average of $73.04. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24. The company has a market cap of $2.41 billion, a P/E ratio of 15.65 and a beta of 0.95.

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, topping analysts' consensus estimates of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The firm had revenue of $3.66 billion during the quarter, compared to analysts' expectations of $3.66 billion. During the same quarter in the prior year, the business earned $1.47 EPS. Sonic Automotive's quarterly revenue was up 5.9% compared to the same quarter last year. As a group, equities analysts predict that Sonic Automotive, Inc. will post 6.14 earnings per share for the current year.

Sonic Automotive Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Monday, September 15th. This is a positive change from Sonic Automotive's previous quarterly dividend of $0.35. This represents a $1.52 annualized dividend and a dividend yield of 2.2%. Sonic Automotive's dividend payout ratio (DPR) is currently 33.78%.

About Sonic Automotive

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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