Analysts Set Sonic Automotive, Inc. (NYSE:SAH) PT at $74.71

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eight ratings firms that are presently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has issued a strong 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 $74.71.

A number of brokerages recently commented on SAH. Wall Street Zen cut Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Benchmark began coverage on Sonic Automotive in a research note on Wednesday, May 28th. They issued a "buy" rating and a $76.00 price objective on the stock. Citigroup began coverage on Sonic Automotive in a research note on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 price objective for the company. Needham & Company LLC reduced their target price on shares of Sonic Automotive from $93.00 to $74.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, March 27th.

Sonic Automotive Stock Performance

Shares of NYSE SAH traded up $0.40 during midday trading on Friday, hitting $85.25. 210,742 shares of the company's stock traded hands, compared to its average volume of 222,042. The firm has a fifty day moving average of $75.65 and a 200 day moving average of $68.66. Sonic Automotive has a 1 year low of $52.00 and a 1 year high of $89.62. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.38 and a current ratio of 1.09. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of 12.14, a price-to-earnings-growth ratio of 0.78 and a beta of 1.04.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.46 by $0.02. Sonic Automotive had a net margin of 1.69% and a return on equity of 19.42%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same period in the previous year, the business posted $1.36 earnings per share. The firm's quarterly revenue was up 7.9% compared to the same quarter last year. On average, analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current year.

Sonic Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Friday, June 13th were given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.64%. The ex-dividend date was Friday, June 13th. Sonic Automotive's payout ratio is currently 19.94%.

Insider Activity at Sonic Automotive

In related news, President Jeff Dyke sold 31,152 shares of the firm's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the completion of the transaction, the president directly owned 605,969 shares of the company's stock, valued at approximately $42,448,128.45. This trade represents a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold a total of 50,000 shares of company stock valued at $3,502,062 over the last quarter. 42.65% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Alaska Department of Revenue increased its holdings in shares of Sonic Automotive by 6.4% in the second quarter. State of Alaska Department of Revenue now owns 8,622 shares of the company's stock worth $688,000 after purchasing an additional 517 shares during the last quarter. Harrell Investment Partners LLC purchased a new position in Sonic Automotive during the 2nd quarter valued at approximately $240,000. Counterpoint Mutual Funds LLC bought a new stake in Sonic Automotive in the 2nd quarter worth approximately $360,000. Oliver Luxxe Assets LLC raised its holdings in shares of Sonic Automotive by 0.9% during the 2nd quarter. Oliver Luxxe Assets LLC now owns 23,141 shares of the company's stock worth $1,850,000 after acquiring an additional 205 shares in the last quarter. Finally, Contravisory Investment Management Inc. purchased a new stake in shares of Sonic Automotive during the 2nd quarter worth approximately $270,000. Institutional investors own 46.92% of the company's stock.

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.