Sonic Automotive (NYSE:SAH) Given New $95.00 Price Target at Needham & Company LLC

Key Points

• Analysts at Needham & Company LLC have increased their price target for Sonic Automotive from $74.00 to $95.00, indicating a potential upside of 25.47% from the previous close.
• The company reported earnings of $2.19 per share for the last quarter, exceeding estimates by $0.56, with a revenue of $3.66 billion.
• Insider selling has occurred recently, with President Jeff Dyke selling over 31,000 shares, representing a 4.89% decrease in his ownership.

Sonic Automotive (NYSE:SAH - Get Free Report) had its price target boosted by Needham & Company LLC from $74.00 to $95.00 in a report released on Friday, Marketbeat.com reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price target would suggest a potential upside of 31.44% from the stock's current price.

A number of other research firms have also recently issued reports on SAH. Bank of America increased their target price on Sonic Automotive from $80.00 to $94.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Benchmark initiated coverage on shares of Sonic Automotive in a research report on Wednesday, May 28th. They issued a "buy" rating and a $76.00 target price on the stock. JPMorgan Chase & Co. reissued an "underweight" rating and set a $72.00 target price (up from $65.00) on shares of Sonic Automotive in a report on Thursday, July 17th. Wall Street Zen downgraded Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. Finally, Citigroup initiated coverage on Sonic Automotive in a research report on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 target price on the stock. One research analyst has rated the stock with a sell rating, three have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $77.86.

Sonic Automotive Stock Performance

Shares of SAH traded up $0.08 during trading hours on Friday, reaching $72.28. 8,786 shares of the company traded hands, compared to its average volume of 228,218. The stock's fifty day moving average is $77.81 and its 200 day moving average is $69.66. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.24 and a current ratio of 1.03. The stock has a market cap of $2.45 billion, a P/E ratio of 16.06 and a beta of 1.04. Sonic Automotive has a 1-year low of $52.00 and a 1-year high of $89.62.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The company reported $2.19 EPS for the quarter, topping analysts' consensus estimates of $1.63 by $0.56. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.66 billion. During the same quarter in the prior year, the firm earned $1.47 EPS. The company's revenue was up 5.9% on a year-over-year basis. Equities research analysts anticipate that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Sonic Automotive news, President Jeff Dyke sold 31,152 shares of Sonic Automotive stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the completion of the sale, the president owned 605,969 shares of the company's stock, valued at $42,448,128.45. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last three months, insiders have sold 50,000 shares of company stock valued at $3,502,062. 42.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Voya Investment Management LLC increased its position in Sonic Automotive by 1.9% during the 1st quarter. Voya Investment Management LLC now owns 7,451 shares of the company's stock valued at $424,000 after buying an additional 136 shares in the last quarter. Oliver Luxxe Assets LLC raised its stake in shares of Sonic Automotive by 0.9% in the second quarter. Oliver Luxxe Assets LLC now owns 23,141 shares of the company's stock worth $1,850,000 after buying an additional 205 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Sonic Automotive by 4.8% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,370 shares of the company's stock worth $530,000 after buying an additional 380 shares during the period. American Century Companies Inc. boosted its stake in Sonic Automotive by 1.9% in the 4th quarter. American Century Companies Inc. now owns 20,596 shares of the company's stock worth $1,305,000 after purchasing an additional 390 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in Sonic Automotive by 2.0% in the 1st quarter. Russell Investments Group Ltd. now owns 22,581 shares of the company's stock worth $1,286,000 after purchasing an additional 442 shares in the last quarter. 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.