Sonic Automotive (NYSE:SAH) Sets New 52-Week High - Here's Why

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $83.31 and last traded at $82.92, with a volume of 38859 shares changing hands. The stock had previously closed at $79.93.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Benchmark assumed coverage on Sonic Automotive in a research note on Wednesday, May 28th. They issued a "buy" rating and a $76.00 price target on the stock. Needham & Company LLC cut 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 Sonic Automotive in a research note on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 target price for the company. JPMorgan Chase & Co. dropped 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 note on Thursday, March 27th. Finally, Bank of America raised their price objective on shares of Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Two analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $74.71.

Sonic Automotive Price Performance

The company has a market cap of $2.97 billion, a PE ratio of 12.46, a P/E/G ratio of 0.76 and a beta of 1.04. The company has a 50-day moving average price of $71.58 and a two-hundred day moving average price of $67.33. 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 (NYSE:SAH - Get Free Report) last released its quarterly earnings results on Thursday, April 24th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $1.46 by $0.02. Sonic Automotive had a return on equity of 19.42% and a net margin of 1.69%. The business had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.47 billion. During the same quarter in the previous year, the firm posted $1.36 earnings per share. The company's revenue was up 7.9% compared to the same quarter last year. Sell-side analysts expect that Sonic Automotive, Inc. will post 6.14 earnings per share for the current fiscal 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 given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.60%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive's payout ratio is currently 19.94%.

Insider Buying and Selling

In other news, President Jeff Dyke sold 31,152 shares of the business's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $70.05, for a total value of $2,182,197.60. Following the completion of the sale, the president owned 605,969 shares of the company's stock, valued at approximately $42,448,128.45. The trade was a 4.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders have sold 50,000 shares of company stock worth $3,502,062. Corporate insiders own 42.65% of the company's stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently bought and sold shares of SAH. Voya Investment Management LLC lifted its holdings in Sonic Automotive by 1.9% during the 1st quarter. Voya Investment Management LLC now owns 7,451 shares of the company's stock worth $424,000 after buying an additional 136 shares during the last quarter. Jane Street Group LLC lifted its stake in Sonic Automotive by 263.4% during the first quarter. Jane Street Group LLC now owns 62,908 shares of the company's stock worth $3,583,000 after purchasing an additional 45,596 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Sonic Automotive by 15.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company's stock worth $2,204,000 after purchasing an additional 5,286 shares during the period. Aristeia Capital L.L.C. acquired a new position in Sonic Automotive in the first quarter worth $238,000. Finally, Caxton Associates LLP bought a new stake in Sonic Automotive during the first quarter valued at $639,000. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.