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

Key Points

• Analysts give Sonic Automotive a consensus Hold rating from 10 firms (2 sell, 5 hold, 3 buy), with an average 1-year price target of $77.50.
• Sonic slightly missed its latest quarter—EPS $1.52 vs. $1.53 expected and revenue $3.87B vs. $3.94B expected—with revenue down 0.6% year-over-year.
• The company declared a quarterly dividend of $0.38 (annualized $1.52, yield 2.2%), and insiders own about 43.68% of the stock, including a recent purchase by major shareholder Paul P. Rusnak.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) has received a consensus recommendation of "Hold" from the ten ratings firms that are covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $77.50.

SAH has been the topic of a number of research analyst reports. JPMorgan Chase & Co. reduced their target price on Sonic Automotive from $70.00 to $67.00 and set an "underweight" rating on the stock in a report on Friday, January 16th. Zacks Research downgraded Sonic Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Stephens reduced their target price on Sonic Automotive from $68.00 to $67.00 and set an "equal weight" rating on the stock in a report on Thursday, February 19th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Sonic Automotive in a report on Friday, March 27th. Finally, Barclays set a $67.00 price target on Sonic Automotive in a report on Monday, February 23rd.

Sonic Automotive Trading Down 0.4%

NYSE:SAH opened at $67.82 on Tuesday. The company has a quick ratio of 0.32, a current ratio of 1.09 and a debt-to-equity ratio of 1.80. The business's 50 day moving average is $62.94 and its two-hundred day moving average is $64.61. Sonic Automotive has a 52 week low of $54.11 and a 52 week high of $89.62. The company has a market cap of $2.28 billion, a PE ratio of 20.01, a P/E/G ratio of 2.06 and a beta of 0.82.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its earnings results on Wednesday, February 18th. The company reported $1.52 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.01). Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%.The firm had revenue of $3.87 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same period in the prior year, the business earned $1.51 EPS. The company's quarterly revenue was down .6% on a year-over-year basis. On average, analysts predict that Sonic Automotive will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 13th will be issued a $0.38 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 annualized dividend and a dividend yield of 2.2%. Sonic Automotive's dividend payout ratio (DPR) is 44.84%.

Insider Activity

In related news, major shareholder Paul P. Rusnak purchased 11,481 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were acquired at an average price of $59.95 per share, with a total value of $688,285.95. Following the acquisition, the insider owned 5,100,000 shares in the company, valued at approximately $305,745,000. This trade represents a 0.23% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders purchased 100,000 shares of company stock valued at $5,994,472. Company insiders own 43.68% of the company's stock.

Institutional Trading of Sonic Automotive

Several hedge funds have recently made changes to their positions in the stock. Mitsubishi UFJ Trust & Banking Corp lifted its holdings in shares of Sonic Automotive by 1.2% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company's stock worth $965,000 after purchasing an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Sonic Automotive by 1.9% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company's stock worth $924,000 after purchasing an additional 273 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Sonic Automotive by 8.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company's stock worth $221,000 after purchasing an additional 284 shares during the last quarter. CWM LLC lifted its holdings in shares of Sonic Automotive by 11.3% in the 4th quarter. CWM LLC now owns 2,858 shares of the company's stock worth $177,000 after purchasing an additional 291 shares during the last quarter. Finally, Creative Planning lifted its holdings in shares of Sonic Automotive by 12.4% in the 3rd quarter. Creative Planning now owns 3,000 shares of the company's stock worth $228,000 after purchasing an additional 332 shares during the last quarter. Institutional investors own 46.92% of the company's stock.

Sonic Automotive Company Profile

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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