Sonic Automotive, Inc. (NYSE:SAH) Given Average Recommendation of "Hold" by Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) have been given an average recommendation of "Hold" by the ten brokerages that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and three have issued a buy rating on the company. The average twelve-month price target among analysts that have covered the stock in the last year is $80.50.

Several equities research analysts recently commented on SAH shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Sonic Automotive in a report on Friday, March 27th. Morgan Stanley set a $72.00 price objective on Sonic Automotive in a report on Thursday. Barclays raised their target price on Sonic Automotive from $67.00 to $77.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Bank of America began coverage on Sonic Automotive in a research note on Wednesday, March 4th. They set a "neutral" rating for the company. Finally, Needham & Company LLC restated a "buy" rating and set a $90.00 price target on shares of Sonic Automotive in a research note on Tuesday, March 31st.

Insider Activity

In other news, major shareholder Paul P. Rusnak purchased 11,481 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was acquired at an average cost of $59.95 per share, for a total transaction of $688,285.95. Following the purchase, the insider directly owned 5,100,000 shares in the company, valued at $305,745,000. This trade represents a 0.23% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In the last ninety days, insiders bought 81,262 shares of company stock worth $4,870,567. Insiders own 43.68% of the company's stock.

Institutional Investors Weigh In On Sonic Automotive

A number of large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP grew its stake in shares of Sonic Automotive by 3.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company's stock valued at $90,088,000 after purchasing an additional 48,599 shares during the period. Heartland Advisors Inc. bought a new stake in shares of Sonic Automotive during the 1st quarter valued at about $8,450,000. Fifth Third Bancorp lifted its position in shares of Sonic Automotive by 2,981.1% during the 1st quarter. Fifth Third Bancorp now owns 4,067 shares of the company's stock valued at $279,000 after buying an additional 3,935 shares in the last quarter. Hsbc Holdings PLC lifted its position in shares of Sonic Automotive by 66.7% during the 1st quarter. Hsbc Holdings PLC now owns 13,519 shares of the company's stock valued at $922,000 after buying an additional 5,411 shares in the last quarter. Finally, Louisiana State Employees Retirement System purchased a new position in shares of Sonic Automotive during the 1st quarter valued at about $453,000. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Price Performance

NYSE SAH opened at $81.09 on Friday. Sonic Automotive has a one year low of $54.11 and a one year high of $89.62. The stock has a 50-day moving average of $66.46 and a 200 day moving average of $64.42. The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of 25.82, a PEG ratio of 1.74 and a beta of 0.89. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.69 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same period last year, the company earned $1.48 EPS. Sonic Automotive's revenue for the quarter was up 1.0% on a year-over-year basis. On average, sell-side analysts forecast that Sonic Automotive will post 6.64 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.41 per share. The ex-dividend date is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. This is an increase from Sonic Automotive's previous quarterly dividend of $0.38. Sonic Automotive's dividend payout ratio is presently 48.41%.

About Sonic Automotive

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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