Sonic Automotive (NYSE:SAH) Price Target Raised to $80.00 at Benchmark

Key Points

• Benchmark raised the price target for Sonic Automotive from $76.00 to $80.00, reflecting a potential upside of 5.66% from its current price, maintaining a "buy" rating.
• Bank of America set an even higher price target of $94.00 for Sonic Automotive, also rating the stock as a "buy."
• Sonic Automotive reported a quarterly EPS of $2.19, significantly exceeding the consensus estimate of $1.63, with revenue increasing by 5.9% year-over-year.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price objective raised by Benchmark from $76.00 to $80.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Benchmark's price target indicates a potential upside of 5.66% from the stock's current price.

Several other analysts have also issued reports on the company. Bank of America upped their target price on Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Citigroup started coverage on Sonic Automotive in a research note on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 target price on the stock. JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $72.00 target price (up previously from $65.00) on shares of Sonic Automotive in a report on Thursday, July 17th. Wall Street Zen downgraded Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, Stephens downgraded Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their price objective for the company from $72.00 to $82.00 in a report on Thursday, July 17th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $77.86.

Sonic Automotive Price Performance

Sonic Automotive stock opened at $75.71 on Friday. The business has a 50 day simple moving average of $77.27 and a 200 day simple moving average of $69.36. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.09 and a quick ratio of 0.38. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The company has a market capitalization of $2.57 billion, a PE ratio of 10.79 and a beta of 1.04.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported $2.19 EPS for the quarter, beating the consensus estimate of $1.63 by $0.56. Sonic Automotive had a return on equity of 19.42% and a net margin of 1.69%. The company had revenue of $3.66 billion during the quarter, compared to analysts' expectations of $3.66 billion. During the same period last year, the firm earned $1.47 EPS. The business's revenue for the quarter was up 5.9% on a year-over-year basis. On average, sell-side analysts forecast that Sonic Automotive will post 6.14 EPS for the current fiscal year.

Insiders Place Their Bets

In other Sonic Automotive news, President Jeff Dyke sold 576 shares of Sonic Automotive stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $70.02, for a total transaction of $40,331.52. Following the sale, the president directly owned 605,393 shares of the company's stock, valued at approximately $42,389,617.86. The trade was a 0.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last quarter, insiders sold 50,000 shares of company stock worth $3,502,062. Insiders own 42.65% of the company's stock.

Institutional Trading of Sonic Automotive

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Sonic Automotive by 1.3% during the 4th quarter. Vanguard Group Inc. now owns 1,557,344 shares of the company's stock valued at $98,658,000 after acquiring an additional 20,058 shares in the last quarter. Westwood Holdings Group Inc. raised its holdings in Sonic Automotive by 26.2% in the 1st quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock worth $36,525,000 after acquiring an additional 133,044 shares during the last quarter. Millennium Management LLC raised its holdings in Sonic Automotive by 3.9% in the 4th quarter. Millennium Management LLC now owns 476,107 shares of the company's stock worth $30,161,000 after acquiring an additional 17,965 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock worth $20,239,000 after acquiring an additional 197,336 shares during the last quarter. Finally, Northern Trust Corp raised its holdings in Sonic Automotive by 0.3% in the 1st quarter. Northern Trust Corp now owns 291,941 shares of the company's stock worth $16,629,000 after acquiring an additional 808 shares during the last quarter. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Company Profile

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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