Sonic Automotive (NYSE:SAH) Reaches 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 subject of several recent research reports. Bank of America increased their price target on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. decreased their target price on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating for the company in a research report on Thursday, March 27th. Needham & Company LLC lowered their price target on shares of Sonic Automotive from $93.00 to $74.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Benchmark started coverage on shares of Sonic Automotive in a research note on Wednesday, May 28th. They issued a "buy" rating and a $76.00 price objective on the stock. Finally, Citigroup assumed coverage on shares of Sonic Automotive in a research report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 price objective for the company. Two analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $74.71.

Sonic Automotive Stock Performance

The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of 11.46, a price-to-earnings-growth ratio of 0.69 and a beta of 1.02. The company has a 50 day simple moving average of $67.38 and a 200-day simple moving average of $66.39. The company has a quick ratio of 0.38, a current ratio of 1.09 and a debt-to-equity ratio of 1.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its earnings results 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 company 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 1.69% and a return on equity of 19.42%. Sonic Automotive's quarterly revenue was up 7.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.36 EPS. As a group, equities research analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 15th. Stockholders of record on Friday, June 13th will be issued a dividend of $0.35 per share. The ex-dividend date is Friday, June 13th. This represents a $1.40 annualized dividend and a dividend yield of 1.74%. Sonic Automotive's dividend payout ratio is currently 19.94%.

Insider Activity

In related news, President Jeff Dyke sold 16,434 shares of the firm's stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $70.03, for a total value of $1,150,873.02. Following the transaction, the president now owns 638,959 shares of the company's stock, valued at approximately $44,746,298.77. This trade represents a 2.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 50,000 shares of company stock worth $3,502,062 in the last three months. Company insiders own 42.65% of the company's stock.

Institutional Trading of Sonic Automotive

Hedge funds have recently added to or reduced their stakes in the stock. New York State Teachers Retirement System boosted its stake in Sonic Automotive by 0.8% in the 4th quarter. New York State Teachers Retirement System now owns 25,935 shares of the company's stock worth $1,643,000 after purchasing an additional 212 shares during the period. Principal Financial Group Inc. raised its position in Sonic Automotive by 3.2% during the fourth quarter. Principal Financial Group Inc. now owns 71,051 shares of the company's stock valued at $4,501,000 after purchasing an additional 2,212 shares in the last quarter. New York State Common Retirement Fund boosted its stake in Sonic Automotive by 54.4% in the fourth quarter. New York State Common Retirement Fund now owns 45,000 shares of the company's stock worth $2,851,000 after buying an additional 15,849 shares in the last quarter. Denali Advisors LLC grew its holdings in shares of Sonic Automotive by 111.2% during the 4th quarter. Denali Advisors LLC now owns 87,100 shares of the company's stock valued at $5,518,000 after purchasing an additional 45,857 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in Sonic Automotive by 515.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock valued at $30,000 after acquiring an additional 402 shares during the period. Institutional investors 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.