Sonic Automotive (NYSE:SAH) Hits New 52-Week High Following Analyst Upgrade

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday after Bank of America raised their price target on the stock from $80.00 to $94.00. Bank of America currently has a buy rating on the stock. Sonic Automotive traded as high as $78.11 and last traded at $77.14, with a volume of 203139 shares changing hands. The stock had previously closed at $75.09.

Several other brokerages have also weighed in on SAH. Needham & Company LLC dropped their target price on Sonic Automotive from $93.00 to $74.00 and set a "buy" rating on the stock in a research report on Thursday, April 24th. Citigroup started coverage on shares of Sonic Automotive in a research report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 target price for the company. JPMorgan Chase & Co. cut their price target on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, March 27th. Wall Street Zen upgraded shares of Sonic Automotive from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 24th. Finally, Benchmark began coverage on Sonic Automotive in a report on Wednesday, May 28th. They set a "buy" rating and a $76.00 target price on the stock. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $74.71.

Insiders Place Their Bets

In related news, President Jeff Dyke sold 16,434 shares of the business's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $70.03, for a total transaction of $1,150,873.02. Following the transaction, the president now directly owns 638,959 shares in the company, valued at $44,746,298.77. The trade was a 2.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold a total of 50,000 shares of company stock valued at $3,502,062 in the last three months. Company insiders own 42.65% of the company's stock.

Institutional Trading of Sonic Automotive

Institutional investors and hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. lifted its holdings in shares of Sonic Automotive by 124.9% during the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock valued at $20,239,000 after acquiring an additional 197,336 shares during the period. Westwood Holdings Group Inc. lifted its holdings in Sonic Automotive by 26.2% during 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 during the last quarter. Nuveen LLC acquired a new position in Sonic Automotive in the first quarter valued at about $7,317,000. HITE Hedge Asset Management LLC grew its stake 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 during the last quarter. Finally, Phocas Financial Corp. raised its stake in shares of Sonic Automotive by 86.6% in the fourth quarter. Phocas Financial Corp. now owns 116,343 shares of the company's stock valued at $7,370,000 after acquiring an additional 54,008 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Stock Up 2.7%

The firm has a fifty day moving average price of $66.06 and a 200 day moving average price of $66.14. The firm has a market capitalization of $2.62 billion, a price-to-earnings ratio of 12.48 and a beta of 1.02. The company has a current ratio of 1.09, a quick ratio of 0.35 and a debt-to-equity ratio of 1.75.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.02. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.47 billion. Sonic Automotive had a net margin of 1.52% and a return on equity of 19.96%. The firm's quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.36 EPS. Sell-side analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Friday, June 13th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.81%. The ex-dividend date is Friday, June 13th. Sonic Automotive's dividend payout ratio is 19.94%.

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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