Sonic Automotive's (SAH) Buy Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company LLC has reaffirmed a "buy" rating for Sonic Automotive (SAH) with a price target of $95.00, indicating a potential upside of 30.94%.
• Sonic Automotive reported earnings of $2.19 per share, exceeding analysts' expectations, while its revenue grew by 5.9% year-over-year.
• Insider trading activity shows that 42.65% of the company’s stock is owned by insiders, with recent sales indicating ongoing confidence from leadership.

Sonic Automotive (NYSE:SAH - Get Free Report)'s stock had its "buy" rating reissued by Needham & Company LLC in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $95.00 price objective on the stock. Needham & Company LLC's target price points to a potential upside of 30.94% from the company's current price.

Several other equities analysts also recently weighed in on the company. 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. Stephens cut shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their target price for the stock from $72.00 to $82.00 in a research report on Thursday, July 17th. Bank of America boosted their target price on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a report on Monday, June 16th. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $72.00 price target (up previously from $65.00) on shares of Sonic Automotive in a research note on Thursday, July 17th. Finally, Benchmark lifted their price target on shares of Sonic Automotive from $76.00 to $80.00 and gave the company a "buy" rating in a report on Friday, July 25th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $77.86.

Sonic Automotive Trading Up 3.2%

NYSE:SAH opened at $72.55 on Wednesday. The stock has a market capitalization of $2.48 billion, a price-to-earnings ratio of 16.12 and a beta of 0.99. Sonic Automotive has a 1 year low of $52.00 and a 1 year high of $89.62. The stock has a fifty day moving average price of $78.13 and a two-hundred day moving average price of $69.80. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.24 and a current ratio of 1.03.

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

Insiders Place Their Bets

In other news, President Jeff Dyke sold 576 shares of the firm's stock in a transaction dated 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 owned 605,393 shares in the company, valued at approximately $42,389,617.86. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Over the last 90 days, insiders sold 50,000 shares of company stock worth $3,502,062. 42.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently made changes to their positions in the company. Canada Pension Plan Investment Board acquired a new stake in Sonic Automotive in the 4th quarter worth $51,000. Quarry LP acquired a new stake in Sonic Automotive during the first quarter worth about $84,000. Aster Capital Management DIFC Ltd increased its stake in Sonic Automotive by 1,429.7% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,545 shares of the company's stock valued at $98,000 after acquiring an additional 1,444 shares during the period. KLP Kapitalforvaltning AS acquired a new position in Sonic Automotive in the 4th quarter valued at approximately $185,000. Finally, R Squared Ltd bought a new stake in shares of Sonic Automotive in the 2nd quarter worth approximately $214,000. Institutional investors own 46.92% of the company's stock.

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.

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