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

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report)'s stock price hit a new 52-week high during trading on Tuesday . The stock traded as high as $88.57 and last traded at $87.73, with a volume of 39852 shares trading hands. The stock had previously closed at $87.18.

Analyst Ratings Changes

Several analysts recently issued reports on SAH shares. 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 note on Thursday, April 24th. Wall Street Zen lowered Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. 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 research note on Thursday, March 27th. Bank of America raised their price target on Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Finally, Citigroup initiated coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price target on the stock. Two investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Sonic Automotive has a consensus rating of "Moderate Buy" and a consensus target price of $74.71.

Sonic Automotive Trading Up 0.9%

The company has a current ratio of 1.09, a quick ratio of 0.38 and a debt-to-equity ratio of 1.67. The company has a market cap of $3.00 billion, a PE ratio of 12.57, a PEG ratio of 0.77 and a beta of 1.04. The stock has a 50 day moving average price of $74.18 and a 200 day moving average price of $68.14.

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 net margin of 1.69% and a return on equity of 19.42%. The company's quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.36 EPS. Sell-side analysts predict that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

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

Insiders Place Their Bets

In other news, President Jeff Dyke sold 576 shares of Sonic Automotive stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $70.02, for a total transaction of $40,331.52. Following the completion of the transaction, the president directly owned 605,393 shares in the company, valued at approximately $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 accessible through the SEC website. Insiders have sold a total of 50,000 shares of company stock valued at $3,502,062 in the last 90 days. 42.65% of the stock is currently owned by corporate insiders.

Institutional Trading of Sonic Automotive

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Smartleaf Asset Management LLC boosted its holdings in 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 acquiring an additional 402 shares in the last quarter. Canada Pension Plan Investment Board bought a new position in Sonic Automotive in the 4th quarter worth about $51,000. Quarry LP purchased a new stake in Sonic Automotive during the 1st quarter valued at about $84,000. Aster Capital Management DIFC Ltd increased its stake in Sonic Automotive by 1,429.7% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company's stock valued at $98,000 after purchasing an additional 1,444 shares in the last quarter. Finally, KLP Kapitalforvaltning AS purchased a new position in Sonic Automotive in the fourth quarter worth about $185,000. Hedge funds and other institutional investors 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.