Sonic Automotive (NYSE:SAH) Sets New 12-Month High After Analyst Upgrade

Key Points

• Sonic Automotive hit a new 52-week high after Bank of America raised its price target to $108 from $91 and kept a buy rating. The stock traded as high as $90.73, above its previous close of $88.01.
• Several analysts have recently adjusted their views on SAH, including Citigroup boosting its target to $95 and Barclays raising its target to $77. Despite the positive updates, the overall consensus rating remains Hold with an average price target of $84.56.
• The company recently reported quarterly EPS of $1.62, topping estimates, and also increased its quarterly dividend to $0.41 per share from $0.38. Insider activity was mixed, with President Jeff Dyke selling shares in a pre-arranged transaction.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday after Bank of America raised their price target on the stock from $91.00 to $108.00. Bank of America currently has a buy rating on the stock. Sonic Automotive traded as high as $90.73 and last traded at $91.0590, with a volume of 12981 shares trading hands. The stock had previously closed at $88.01.

SAH has been the topic of a number of other research reports. Citigroup upped their target price on shares of Sonic Automotive from $82.00 to $95.00 and gave the stock a "buy" rating in a research report on Monday, May 11th. Barclays lifted their price target on Sonic Automotive from $67.00 to $77.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 5th. Zacks Research raised shares of Sonic Automotive from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Weiss Ratings downgraded shares of Sonic Automotive from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday. Finally, Needham & Company LLC reiterated a "buy" rating and set a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Five 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. According to MarketBeat.com, Sonic Automotive has a consensus rating of "Hold" and a consensus price target of $84.56.

Insider Activity

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of Sonic Automotive stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the transaction, the president owned 543,668 shares in the company, valued at $46,331,386.96. This trade represents a 6.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 over the last 90 days. 43.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. raised its stake 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 valued at $20,239,000 after purchasing an additional 197,336 shares during the period. Heartland Advisors Inc. purchased a new position in shares of Sonic Automotive in the first quarter valued at $8,450,000. Bridgeway Capital Management LLC acquired a new stake in Sonic Automotive during the 4th quarter valued at $7,384,000. Qube Research & Technologies Ltd purchased a new stake in Sonic Automotive during the 3rd quarter worth $7,450,000. Finally, BNP Paribas Financial Markets increased its stake in Sonic Automotive by 70.8% during the 4th quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company's stock worth $11,208,000 after buying an additional 75,125 shares during the period. Institutional investors and hedge funds own 46.92% of the company's stock.

Sonic Automotive Price Performance

The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03. The business's fifty day simple moving average is $81.04 and its 200 day simple moving average is $69.78. The stock has a market cap of $2.89 billion, a price-to-earnings ratio of 29.14, a price-to-earnings-growth ratio of 2.00 and a beta of 0.89.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, beating analysts' consensus estimates of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The firm had revenue of $3.69 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter in the prior year, the business posted $1.48 earnings per share. Sonic Automotive's revenue for the quarter was up 1.0% on a year-over-year basis. Research analysts predict that Sonic Automotive, Inc. will post 6.92 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be issued a $0.41 dividend. This is a boost from Sonic Automotive's previous quarterly dividend of $0.38. This represents a $1.64 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Monday, June 15th. Sonic Automotive's dividend payout ratio is currently 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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