Sonic Automotive (NYSE:SAH) Share Price Passes Above 200-Day Moving Average - Here's What Happened

Key Points

• Sonic Automotive crossed above its 200‑day moving average, trading as high as $68.20 and last at $67.82 versus the 200‑day MA of $64.61 on volume of 181,767 shares.
• Analysts are mixed: the stock carries an average rating of "Hold" with an average target of $77.50, while recent notes range from new "neutral" coverage to downgrades including Zacks' "strong sell" and JPMorgan's "underweight."
• The company slightly missed the quarter (EPS $1.52 vs. $1.53 expected; revenue $3.87B vs. $3.94B), announced a $0.38 quarterly dividend (2.2% yield), and recorded insider buying by major shareholder Paul Rusnak.

Shares of Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $64.61 and traded as high as $68.20. Sonic Automotive shares last traded at $67.82, with a volume of 181,767 shares.

Analyst Ratings Changes

Several equities analysts recently commented on SAH shares. Bank of America began coverage on shares of Sonic Automotive in a research report on Wednesday, March 4th. They issued a "neutral" rating for the company. Weiss Ratings reissued a "hold (c)" rating on shares of Sonic Automotive in a research report on Friday, March 27th. Stephens cut their price target on shares of Sonic Automotive from $68.00 to $67.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 19th. Zacks Research cut shares of Sonic Automotive from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Sonic Automotive from $70.00 to $67.00 and set an "underweight" rating for the company in a research note on Friday, January 16th. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $77.50.

Sonic Automotive Stock Performance

The company has a quick ratio of 0.32, a current ratio of 1.09 and a debt-to-equity ratio of 1.80. The stock has a market capitalization of $2.28 billion, a PE ratio of 20.01, a PEG ratio of 2.06 and a beta of 0.82. The firm has a 50 day moving average price of $62.94 and a 200-day moving average price of $64.61.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its earnings results on Wednesday, February 18th. The company reported $1.52 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.01). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The firm had revenue of $3.87 billion during the quarter, compared to analysts' expectations of $3.94 billion. During the same quarter in the prior year, the company earned $1.51 EPS. Sonic Automotive's quarterly revenue was down .6% on a year-over-year basis. Research analysts expect 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 Wednesday, April 15th. Stockholders of record on Friday, March 13th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, March 13th. Sonic Automotive's dividend payout ratio is 44.84%.

Insider Buying and Selling at Sonic Automotive

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 11,481 shares of Sonic Automotive stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average price of $59.95 per share, with a total value of $688,285.95. Following the completion of the acquisition, the insider directly owned 5,100,000 shares in the company, valued at approximately $305,745,000. This trade represents a 0.23% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have acquired a total of 100,000 shares of company stock valued at $5,994,472 in the last quarter. 43.68% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its holdings 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 buying an additional 397 shares during the period. Camelot Portfolios LLC acquired a new stake in Sonic Automotive during the fourth quarter worth about $41,000. Torren Management LLC purchased a new position in Sonic Automotive during the fourth quarter valued at approximately $50,000. Aster Capital Management DIFC Ltd purchased a new position in Sonic Automotive during the third quarter valued at approximately $63,000. Finally, National Bank of Canada FI acquired a new position in Sonic Automotive in the third quarter valued at approximately $78,000. 46.92% of the stock is owned by institutional investors and hedge funds.

About Sonic Automotive

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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