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

Key Points

• Sonic Automotive has received a consensus rating of "Moderate Buy" from nine brokerages, with an average 12-month target price of $83.14.
• The company recently announced an increase in its quarterly dividend to $0.38, reflecting a dividend yield of 2.0%.
• Sonic Automotive's stock is currently down 4.4%, with shares opening at $75.05 following a strong earnings report that exceeded analysts' expectations.

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) have earned an average rating of "Moderate Buy" from the nine brokerages that are currently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, three have given a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among analysts that have covered the stock in the last year is $83.1429.

A number of equities analysts have weighed in on the stock. Stephens cut shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and upped their price objective for the company from $72.00 to $82.00 in a research report on Thursday, July 17th. Morgan Stanley upped their price objective on shares of Sonic Automotive from $60.00 to $72.00 and gave the company an "equal weight" rating in a research report on Thursday, August 14th. JPMorgan Chase & Co. reissued an "underweight" rating and issued a $72.00 price objective (up from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Bank of America upped their price objective on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Finally, Citigroup upped their price objective on shares of Sonic Automotive from $81.00 to $82.00 and gave the company a "neutral" rating in a research report on Thursday.

Sonic Automotive Stock Down 4.4%

Shares of Sonic Automotive stock opened at $75.05 on Friday. The company has a fifty day moving average price of $78.60 and a 200 day moving average price of $72.07. 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 twelve month low of $52.00 and a twelve month high of $89.62. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of 16.68 and a beta of 0.98.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The company reported $2.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.63 by $0.56. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm had revenue of $3.66 billion during the quarter, compared to analysts' expectations of $3.66 billion. During the same period in the prior year, the company earned $1.47 EPS. The firm's revenue was up 5.9% on a year-over-year basis. Equities research analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be paid a $0.38 dividend. This is a boost from Sonic Automotive's previous quarterly dividend of $0.35. The ex-dividend date is Monday, September 15th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.0%. Sonic Automotive's dividend payout ratio (DPR) is currently 33.78%.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of the stock. Westwood Holdings Group Inc. raised its stake in shares of Sonic Automotive by 26.2% in the 1st quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock valued at $36,525,000 after purchasing an additional 133,044 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock valued at $20,239,000 after purchasing an additional 197,336 shares in the last quarter. Northern Trust Corp raised its stake in shares of Sonic Automotive by 0.3% in the 1st quarter. Northern Trust Corp now owns 291,941 shares of the company's stock valued at $16,629,000 after purchasing an additional 808 shares in the last quarter. Nuveen Asset Management LLC raised its stake in shares of Sonic Automotive by 1.1% in the 4th quarter. Nuveen Asset Management LLC now owns 128,835 shares of the company's stock valued at $8,162,000 after purchasing an additional 1,386 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in shares of Sonic Automotive in the 1st quarter valued at about $7,317,000. Institutional investors and hedge funds own 46.92% of the company's stock.

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.

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