Sonic Automotive, Inc. (NYSE:SAH) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Sonic Automotive, Inc. has received a consensus rating of "Moderate Buy" from ten research firms, with an average 1-year target price of $83.71.
• The company recently increased its quarterly dividend from $0.35 to $0.38, representing an annualized dividend of $1.52 and a yield of 2.0%.
• Sonic Automotive's stock is currently trading at $75.96, up 1.5%, and has reported strong quarterly earnings, surpassing consensus estimates with $2.19 EPS.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the ten research firms that are presently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $83.7143.

A number of brokerages have recently issued reports on SAH. Morgan Stanley lifted their price target on Sonic Automotive from $60.00 to $72.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. lifted their price target on Sonic Automotive from $74.00 to $76.00 and gave the stock an "underweight" rating in a research note on Tuesday, October 14th. Citigroup lifted their price target on Sonic Automotive from $81.00 to $82.00 and gave the stock a "neutral" rating in a research note on Thursday, September 25th. Benchmark lifted their price target on Sonic Automotive from $80.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, September 18th. Finally, Stephens lowered Sonic Automotive from an "overweight" rating to an "equal weight" rating and lifted their price target for the stock from $72.00 to $82.00 in a research note on Thursday, July 17th.

Hedge Funds Weigh In On Sonic Automotive

A number of institutional investors have recently added to or reduced their stakes in SAH. Goldman Sachs Group Inc. lifted its position in Sonic Automotive by 124.9% during the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock worth $20,239,000 after buying an additional 197,336 shares in the last quarter. Westwood Holdings Group Inc. lifted its position 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 buying an additional 133,044 shares in the last quarter. Nuveen LLC purchased a new position in Sonic Automotive during the first quarter worth approximately $7,317,000. ProShare Advisors LLC purchased a new position in Sonic Automotive during the second quarter worth approximately $6,564,000. Finally, HITE Hedge Asset Management LLC lifted its position in Sonic Automotive by 111.4% during the first quarter. HITE Hedge Asset Management LLC now owns 123,724 shares of the company's stock worth $7,047,000 after buying an additional 65,198 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company's stock.

Sonic Automotive Stock Up 1.5%

Shares of SAH opened at $75.96 on Tuesday. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 1.78. Sonic Automotive has a 12 month low of $52.00 and a 12 month high of $89.62. The stock's 50 day moving average is $78.47 and its two-hundred day moving average is $73.98. The firm has a market cap of $2.59 billion, a P/E ratio of 16.88 and a beta of 0.95.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The company reported $2.19 EPS for the quarter, beating the consensus estimate of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.66 billion. During the same period last year, the company earned $1.47 earnings per share. Sonic Automotive's quarterly revenue was up 5.9% compared to the same quarter last year. Analysts predict that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th were paid a $0.38 dividend. This is a boost from Sonic Automotive's previous quarterly dividend of $0.35. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, September 15th. Sonic Automotive's dividend payout ratio is presently 33.78%.

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.

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