Sonic Automotive (NYSE:SAH) Hits New 12-Month High - Still a Buy?

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) shares hit a new 52-week high during trading on Monday . The stock traded as high as $78.93 and last traded at $78.43, with a volume of 429318 shares traded. The stock had previously closed at $77.62.

Analysts Set New Price Targets

SAH has been the topic of a number of research analyst reports. Citigroup started coverage on Sonic Automotive in a research report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 price target on the stock. Wall Street Zen lowered Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 21st. Needham & Company LLC lowered their target price on Sonic Automotive from $93.00 to $74.00 and set a "buy" rating for the company in a research note on Thursday, April 24th. Bank of America lifted their price target on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a report on Monday, June 16th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a research report on Thursday, March 27th. Two research analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Sonic Automotive has an average rating of "Moderate Buy" and a consensus price target of $74.71.

Sonic Automotive Stock Down 0.8%

The firm's 50 day moving average price is $68.73 and its 200-day moving average price is $66.68. The company has a current ratio of 1.09, a quick ratio of 0.38 and a debt-to-equity ratio of 1.67. The company has a market cap of $2.72 billion, a P/E ratio of 11.40, a price-to-earnings-growth ratio of 0.71 and a beta of 1.02.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings data on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.46 by $0.02. The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.47 billion. Sonic Automotive had a net margin of 1.69% and a return on equity of 19.42%. The business's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period last year, the firm earned $1.36 earnings per share. As a group, equities research analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 15th. Stockholders of record on Friday, June 13th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Friday, June 13th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.75%. Sonic Automotive's dividend payout ratio (DPR) is presently 19.94%.

Insider Buying and Selling

In related news, President Jeff Dyke sold 1,838 shares of the company's stock in a transaction on Thursday, May 29th. The shares were sold at an average price of $70.00, for a total value of $128,660.00. Following the completion of the sale, the president now owns 637,121 shares in the company, valued at $44,598,470. This represents a 0.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders have sold 50,000 shares of company stock valued at $3,502,062 in the last 90 days. 42.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC grew its position in shares of Sonic Automotive by 515.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock valued at $30,000 after purchasing an additional 402 shares during the period. Canada Pension Plan Investment Board bought a new stake in shares of Sonic Automotive during the fourth quarter worth $51,000. Quarry LP bought a new stake in shares of Sonic Automotive during the first quarter worth $84,000. Aster Capital Management DIFC Ltd raised its holdings in shares of Sonic Automotive by 1,429.7% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company's stock worth $98,000 after acquiring an additional 1,444 shares during the period. Finally, KLP Kapitalforvaltning AS bought a new stake in Sonic Automotive in the 4th quarter valued at $185,000. 46.92% of the stock is owned by institutional investors and hedge funds.

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.