Sonic Automotive (NYSE:SAH) Sets New 1-Year Low - What's Next?

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $58.72 and last traded at $60.80, with a volume of 219800 shares traded. The stock had previously closed at $61.34.

Analysts Set New Price Targets

SAH has been the subject of several research reports. Needham & Company LLC reduced their price objective on Sonic Automotive from $93.00 to $74.00 and set a "buy" rating for the company in a research report on Thursday, April 24th. Citigroup assumed coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price target for the company. JPMorgan Chase & Co. dropped their price objective on shares of Sonic Automotive from $80.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, March 27th. Stephens increased their target price on shares of Sonic Automotive from $83.00 to $92.00 and gave the company an "overweight" rating in a research note on Thursday, February 13th. Finally, StockNews.com upgraded Sonic Automotive from a "hold" rating to a "buy" rating in a research note on Friday. Two research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Sonic Automotive has a consensus rating of "Moderate Buy" and an average price target of $69.83.

Sonic Automotive Price Performance

The company has a quick ratio of 0.35, a current ratio of 1.09 and a debt-to-equity ratio of 1.75. The company's 50-day moving average is $60.96 and its 200-day moving average is $64.55. The stock has a market cap of $2.14 billion, a price-to-earnings ratio of 10.22 and a beta of 1.04.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its 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 19.96% and a net margin of 1.52%. The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.47 billion. During the same quarter last year, the company earned $1.36 EPS. Sonic Automotive's revenue was up 7.9% on a year-over-year basis. Equities research analysts expect 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. Investors 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 2.22%. The ex-dividend date of this dividend is Friday, June 13th. Sonic Automotive's dividend payout ratio (DPR) is currently 19.94%.

Institutional Trading of Sonic Automotive

Large investors have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC grew its position in Sonic Automotive by 515.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the company's stock worth $30,000 after acquiring an additional 402 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in Sonic Automotive in the fourth quarter worth $51,000. R Squared Ltd acquired a new stake in shares of Sonic Automotive in the fourth quarter valued at $72,000. Aster Capital Management DIFC Ltd raised 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 last quarter. Finally, KLP Kapitalforvaltning AS acquired a new position in Sonic Automotive during the 4th quarter worth about $185,000. 46.92% of the stock is owned by institutional investors.

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.