Sonic Automotive, Inc. (NYSE:SAH) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Sonic Automotive has a consensus analyst rating of "Hold" from 11 brokerages, with an average 1-year price target of $81.63.
• The company recently posted better-than-expected earnings, reporting $1.62 EPS versus the $1.40 estimate, while revenue came in slightly below expectations at $3.69 billion.
• Sonic Automotive also raised its quarterly dividend to $0.41 per share from $0.38, and the stock was trading at $84.08 after a recent 1.7% gain.

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) have earned an average recommendation of "Hold" from the eleven ratings firms that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $81.6250.

Several research analysts have commented on the company. 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 note on Tuesday, May 5th. UBS Group assumed coverage on Sonic Automotive in a research report on Wednesday, May 27th. They set a "buy" rating and a $90.00 price target for the company. Citigroup lifted their price target on Sonic Automotive from $82.00 to $95.00 and gave the company a "buy" rating in a research report on Monday, May 11th. Morgan Stanley set a $72.00 price target on Sonic Automotive in a research report on Thursday, May 7th. Finally, Weiss Ratings upgraded Sonic Automotive from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 18th.

Sonic Automotive Stock Up 1.7%

Shares of NYSE SAH opened at $84.08 on Friday. Sonic Automotive has a 52 week low of $54.11 and a 52 week high of $89.62. The business has a 50-day simple moving average of $78.74 and a two-hundred day simple moving average of $68.64. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93. The company has a market cap of $2.66 billion, a P/E ratio of 26.78, a P/E/G ratio of 1.94 and a beta of 0.88.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its earnings results 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 business had revenue of $3.69 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter last year, the company earned $1.48 EPS. The firm's revenue was up 1.0% compared to the same quarter last year. Research analysts anticipate that Sonic Automotive will post 6.92 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be given a dividend of $0.41 per share. This is a boost from Sonic Automotive's previous quarterly dividend of $0.38. 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%. Sonic Automotive's dividend payout ratio is 52.23%.

Insider Activity

In related news, President Jeff Dyke sold 35,114 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the transaction, the president directly owned 543,668 shares of the company's stock, valued at approximately $46,331,386.96. This trade represents a 6.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 100,000 shares of company stock worth $8,408,160. Company insiders own 43.68% of the company's stock.

Hedge Funds Weigh In On Sonic Automotive

A number of large investors have recently modified their holdings of SAH. Goldman Sachs Group Inc. raised its holdings 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 valued at $20,239,000 after buying an additional 197,336 shares in the last quarter. Heartland Advisors Inc. purchased a new position in shares of Sonic Automotive during the 1st quarter valued at about $8,450,000. Bridgeway Capital Management LLC purchased a new position in shares of Sonic Automotive during the 4th quarter valued at about $7,384,000. Qube Research & Technologies Ltd purchased a new position in shares of Sonic Automotive during the 3rd quarter valued at about $7,450,000. Finally, Vanguard Group Inc. raised its holdings in shares of Sonic Automotive by 6.2% during the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company's stock valued at $125,278,000 after buying an additional 96,836 shares in the last quarter. 46.92% of the stock is owned by hedge funds and other institutional investors.

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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