Sonic Automotive (NYSE:SAH) Hits New 12-Month High - Here's Why

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 $88.57 and last traded at $87.73, with a volume of 39852 shares traded. The stock had previously closed at $87.18.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Benchmark assumed coverage on Sonic Automotive in a research report on Wednesday, May 28th. They set a "buy" rating and a $76.00 target price on the stock. JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, March 27th. Wall Street Zen cut Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Bank of America upped their price target on Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Finally, Citigroup assumed coverage on Sonic Automotive in a report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price target on the stock. Two research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Sonic Automotive presently has an average rating of "Moderate Buy" and a consensus target price of $74.71.

Sonic Automotive Trading Up 1.4%

The business has a fifty day simple moving average of $73.67 and a 200 day simple moving average of $67.98. The stock has a market cap of $3.00 billion, a price-to-earnings ratio of 12.58, a PEG ratio of 0.76 and a beta of 1.04. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.38 and a current ratio of 1.09.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its earnings results on Thursday, April 24th. The company reported $1.48 EPS for the quarter, beating analysts' consensus estimates of $1.46 by $0.02. The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.47 billion. Sonic Automotive had a return on equity of 19.42% and a net margin of 1.69%. Sonic Automotive's quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.36 EPS. As a group, equities analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 15th. Stockholders of record on Friday, June 13th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.59%. The ex-dividend date is Friday, June 13th. Sonic Automotive's dividend payout ratio (DPR) is 19.94%.

Insider Activity

In other news, President Jeff Dyke sold 576 shares of the firm's stock in a transaction 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 owned 605,393 shares in the company, valued at $42,389,617.86. This trade represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 50,000 shares of company stock worth $3,502,062 in the last 90 days. 42.65% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently made changes to their positions in SAH. Goldman Sachs Group Inc. boosted its holdings in shares of Sonic Automotive by 124.9% during the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock worth $20,239,000 after purchasing an additional 197,336 shares during the last quarter. Westwood Holdings Group Inc. boosted its holdings in shares of Sonic Automotive by 26.2% during the first quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock worth $36,525,000 after purchasing an additional 133,044 shares during the last quarter. Nuveen LLC purchased a new position in shares of Sonic Automotive in the 1st quarter worth $7,317,000. HITE Hedge Asset Management LLC raised its position in shares of Sonic Automotive by 111.4% in the 1st quarter. HITE Hedge Asset Management LLC now owns 123,724 shares of the company's stock worth $7,047,000 after buying an additional 65,198 shares during the period. Finally, Phocas Financial Corp. raised its position in shares of Sonic Automotive by 86.6% in the 4th quarter. Phocas Financial Corp. now owns 116,343 shares of the company's stock worth $7,370,000 after buying an additional 54,008 shares during the period. Institutional investors and hedge funds own 46.92% of the company's stock.

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.