Sonic Automotive, Inc. (NYSE:SAH) Receives $77.86 Average PT from Analysts

Key Points

• Sonic Automotive has received an average recommendation of "Moderate Buy" from eight analyst brokerages, with a target price of $77.86.
• The company recently surpassed earnings expectations, reporting $2.19 EPS for the quarter, significantly beating analysts' estimates of $1.63.
• Sonic Automotive will increase its quarterly dividend from $0.35 to $0.38 per share, representing a yield of 2.0% and a payout ratio of 31.11%.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eight ratings firms that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $77.8571.

Several equities analysts recently issued reports on SAH shares. Citigroup assumed coverage on Sonic Automotive in a research report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price target on the stock. Stephens lowered Sonic Automotive from an "overweight" rating to an "equal weight" rating and boosted their target price for the company from $72.00 to $82.00 in a report on Thursday, July 17th. JPMorgan Chase & Co. restated an "underweight" rating and set a $72.00 price target (up previously from $65.00) on shares of Sonic Automotive in a research note on Thursday, July 17th. Benchmark lifted their price objective on shares of Sonic Automotive from $76.00 to $80.00 and gave the company a "buy" rating in a research report on Friday, July 25th. Finally, Wall Street Zen cut shares of Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 21st.

Sonic Automotive Stock Performance

Shares of SAH traded up $1.34 during mid-day trading on Thursday, reaching $74.40. 166,816 shares of the company's stock were exchanged, compared to its average volume of 285,444. The business's fifty day simple moving average is $78.38 and its 200-day simple moving average is $69.91. The stock has a market capitalization of $2.54 billion, a PE ratio of 16.53 and a beta of 0.99. Sonic Automotive has a 52-week low of $52.00 and a 52-week high of $89.62. 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 issued its quarterly earnings data on Thursday, July 24th. The company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.63 by $0.56. The company had revenue of $3.66 billion for 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%. Sonic Automotive's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period last year, the firm posted $1.47 EPS. On average, equities research analysts expect that Sonic Automotive will post 6.14 earnings per share for the current year.

Sonic Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Monday, September 15th. This is an increase from Sonic Automotive's previous quarterly dividend of $0.35. Sonic Automotive's payout ratio is presently 31.11%.

Insider Activity at Sonic Automotive

In other news, President Jeff Dyke sold 576 shares of the stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $70.02, for a total value of $40,331.52. Following the completion of the transaction, the president owned 605,393 shares in the company, valued at $42,389,617.86. This trade represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last 90 days, insiders have sold 50,000 shares of company stock worth $3,502,062. 42.65% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. boosted its stake in shares of Sonic Automotive by 124.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock worth $20,239,000 after acquiring an additional 197,336 shares in the last quarter. Westwood Holdings Group Inc. raised its holdings in Sonic Automotive by 26.2% during the first quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock worth $36,525,000 after purchasing an additional 133,044 shares during the last quarter. Nuveen LLC purchased a new stake in Sonic Automotive during the first quarter worth $7,317,000. ProShare Advisors LLC acquired a new stake in Sonic Automotive in the second quarter valued at $6,564,000. Finally, HITE Hedge Asset Management LLC increased its position in shares of Sonic Automotive by 111.4% in the first quarter. HITE Hedge Asset Management LLC now owns 123,724 shares of the company's stock valued at $7,047,000 after buying an additional 65,198 shares in the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.