Wall Street Zen Upgrades Sonic Automotive (NYSE:SAH) to Strong-Buy

Wall Street Zen upgraded shares of Sonic Automotive (NYSE:SAH - Free Report) from a buy rating to a strong-buy rating in a research report released on Saturday.

A number of other equities research analysts have also weighed in on SAH. Needham & Company LLC lowered their price objective 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. Citigroup assumed coverage on Sonic Automotive in a report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 target price on the stock. Stephens increased their target price on Sonic Automotive from $83.00 to $92.00 and gave the stock an "overweight" rating in a report on Thursday, February 13th. Finally, JPMorgan Chase & Co. reduced their target price on Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, March 27th. Two equities research analysts have rated the stock with a hold rating, five have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $70.71.

Sonic Automotive Price Performance

SAH traded up $0.43 during trading on Friday, reaching $69.81. 103,693 shares of the stock were exchanged, compared to its average volume of 192,527. The business's 50 day moving average price is $61.98 and its two-hundred day moving average price is $65.47. The company has a debt-to-equity ratio of 1.75, a current ratio of 1.09 and a quick ratio of 0.35. The company has a market capitalization of $2.37 billion, a price-to-earnings ratio of 11.28 and a beta of 1.04. Sonic Automotive has a 1 year low of $51.27 and a 1 year high of $76.78.

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

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Friday, June 13th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 2.01%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive's dividend payout ratio is currently 19.94%.

Institutional Trading of Sonic Automotive

Several large investors have recently added to or reduced their stakes in SAH. Pacific Global Investment Management Co. increased its position in shares of Sonic Automotive by 4.1% during the 4th quarter. Pacific Global Investment Management Co. now owns 4,554 shares of the company's stock valued at $288,000 after purchasing an additional 179 shares during the period. New York State Teachers Retirement System grew its holdings in shares of 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 acquiring an additional 212 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Sonic Automotive by 4.8% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,370 shares of the company's stock worth $530,000 after acquiring an additional 380 shares during the last quarter. American Century Companies Inc. grew its holdings in shares of Sonic Automotive by 1.9% in the 4th quarter. American Century Companies Inc. now owns 20,596 shares of the company's stock worth $1,305,000 after acquiring an additional 390 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its position in shares of Sonic Automotive by 515.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock worth $30,000 after buying an additional 402 shares during the period. 46.92% of the stock is currently 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.