Sonic Automotive (NYSE:SAH) Hits New 1-Year High - Here's Why

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

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Wall Street Zen cut Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 21st. Benchmark began coverage on shares of Sonic Automotive in a research note on Wednesday, May 28th. They set a "buy" rating and a $76.00 price objective on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating for the company in a report on Thursday, March 27th. Citigroup started coverage on shares of Sonic Automotive in a research note on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 target price on the stock. Finally, Needham & Company LLC decreased their price target 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. 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's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $74.71.

Sonic Automotive Stock Performance

The company has a market capitalization of $2.93 billion, a price-to-earnings ratio of 12.29, a P/E/G ratio of 0.70 and a beta of 1.04. The stock has a 50 day simple moving average of $70.49 and a 200 day simple moving average of $67.06. 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 announced its quarterly earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.02. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.47 billion. Sonic Automotive had a return on equity of 19.42% and a net margin of 1.69%. The business's revenue was up 7.9% on a year-over-year basis. During the same quarter last year, the business posted $1.36 EPS. As a group, analysts anticipate that Sonic Automotive, Inc. will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Shareholders of record on Friday, June 13th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.62%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive's payout ratio is 19.94%.

Insider Activity

In other Sonic Automotive news, President Jeff Dyke sold 31,152 shares of the business's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the completion of the transaction, the president owned 605,969 shares in the company, valued at approximately $42,448,128.45. The trade was a 4.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders sold 50,000 shares of company stock worth $3,502,062 in the last three months. Insiders own 42.65% of the company's stock.

Institutional Trading of Sonic Automotive

Institutional investors have recently made changes to their positions in the stock. Smartleaf Asset Management LLC raised its holdings in Sonic Automotive by 515.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock worth $30,000 after purchasing an additional 402 shares in the last quarter. Canada Pension Plan Investment Board bought a new stake in shares of Sonic Automotive in the 4th quarter worth $51,000. Quarry LP acquired a new stake in shares of Sonic Automotive in the first quarter valued at $84,000. Aster Capital Management DIFC Ltd lifted its holdings in shares of Sonic Automotive by 1,429.7% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company's stock valued at $98,000 after buying an additional 1,444 shares during the period. Finally, KLP Kapitalforvaltning AS bought a new position in Sonic Automotive during the fourth quarter valued at about $185,000. 46.92% of the stock is 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.