Sonic Automotive (NYSE:SAH) Reaches New 52-Week High After Analyst Upgrade

Key Points

• Sonic Automotive hit a new 52-week high after Barclays raised its price target from $77 to $92, with the stock trading as high as $100.81. Shares were last near $99.79, up sharply on the day.
• Analyst opinions remain mixed overall: while several firms recently lifted targets and maintained buy ratings, the stock still carries an average Hold rating with a consensus price target of $90.67.
• The company beat quarterly earnings expectations, reporting $1.62 EPS versus $1.40 expected, and also recently increased its dividend to $0.41 per share quarterly from $0.38.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) reached a new 52-week high during trading on Thursday after Barclays raised their price target on the stock from $77.00 to $92.00. Barclays currently has an equal weight rating on the stock. Sonic Automotive traded as high as $100.81 and last traded at $99.79, with a volume of 378264 shares. The stock had previously closed at $92.38.

SAH has been the subject of several other research reports. Needham & Company LLC restated a "buy" rating and set a $90.00 price objective on shares of Sonic Automotive in a research report on Tuesday, March 31st. JPMorgan Chase & Co. dropped their target price on shares of Sonic Automotive from $77.00 to $76.00 and set an "underweight" rating on the stock in a research report on Monday. Morgan Stanley set a $72.00 price target on shares of Sonic Automotive in a research note on Thursday, May 7th. UBS Group upped their price objective on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Finally, Bank of America raised their price objective on Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Sonic Automotive presently has an average rating of "Hold" and an average target price of $90.67.

Insider Buying and Selling

In other news, President Jeff Dyke sold 50,000 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the sale, the president directly owned 111,622 shares of the company's stock, valued at approximately $9,261,277.34. This represents a 30.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 in the last quarter. Insiders own 43.68% of the company's stock.

Institutional Trading of Sonic Automotive

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. grew its stake in shares of Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock valued at $35,000 after purchasing an additional 397 shares during the last quarter. Camelot Portfolios LLC purchased a new stake in shares of Sonic Automotive during the fourth quarter worth approximately $41,000. Torren Management LLC purchased a new position in Sonic Automotive during the 4th quarter worth $50,000. National Bank of Canada FI purchased a new position in Sonic Automotive during the third quarter worth about $78,000. Finally, State of Wyoming acquired a new stake in shares of Sonic Automotive in the 1st quarter valued at approximately $79,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Trading Up 8.0%

The company has a market cap of $3.15 billion, a price-to-earnings ratio of 31.78, a P/E/G ratio of 1.41 and a beta of 0.89. The business has a fifty day simple moving average of $82.83 and a 200 day simple moving average of $70.85. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.22. The firm had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. Sonic Automotive's revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.48 earnings per share. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 6.94 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 1.6%. This is a positive change from Sonic Automotive's previous quarterly dividend of $0.38. The ex-dividend date was Monday, June 15th. Sonic Automotive's payout ratio is 52.23%.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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