Sonic Automotive, Inc. (NYSE:SAH) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Sonic Automotive, Inc. (NYSE:SAH) has been given a consensus rating of “Moderate Buy” by the ten analysts that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, four have given a hold recommendation, three have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $83.7143.

A number of research firms have commented on SAH. JPMorgan Chase & Co. lifted their target price on Sonic Automotive from $74.00 to $76.00 and gave the company an “underweight” rating in a research report on Tuesday, October 14th. Benchmark lifted their target price on Sonic Automotive from $80.00 to $85.00 and gave the company a “buy” rating in a research report on Thursday, September 18th. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a research report on Wednesday, October 8th. Zacks Research upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Tuesday, September 23rd. Finally, Wall Street Zen downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a report on Saturday.

Institutional Investors Weigh In On Sonic Automotive

Several institutional investors and hedge funds have recently modified their holdings of the company. Voya Investment Management LLC raised its holdings in shares of Sonic Automotive by 1.9% in 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 during the period. Nisa Investment Advisors LLC grew its stake in Sonic Automotive by 3.8% during the 2nd quarter. Nisa Investment Advisors LLC now owns 4,509 shares of the company’s stock worth $362,000 after purchasing an additional 165 shares in the last quarter. Oliver Luxxe Assets LLC grew its stake in Sonic Automotive by 0.9% during the 2nd quarter. Oliver Luxxe Assets LLC now owns 23,141 shares of the company’s stock worth $1,850,000 after purchasing an additional 205 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Sonic Automotive by 992.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in Sonic Automotive by 2.0% during 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.

Sonic Automotive Price Performance

NYSE:SAH opened at $75.96 on Tuesday. Sonic Automotive has a 52 week low of $52.00 and a 52 week high of $89.62. The company has a quick ratio of 0.24, a current ratio of 1.03 and a debt-to-equity ratio of 1.78. The company has a market capitalization of $2.59 billion, a P/E ratio of 16.88 and a beta of 0.95. The stock’s fifty day moving average is $78.47 and its two-hundred day moving average is $73.98.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, July 24th. The company reported $2.19 EPS for the quarter, beating analysts’ consensus estimates of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.66 billion. During the same quarter in the previous year, the business earned $1.47 earnings per share. The company’s revenue for the quarter was up 5.9% on a year-over-year basis. Equities analysts expect that Sonic Automotive will post 6.14 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Monday, September 15th were issued a $0.38 dividend. The ex-dividend date was Monday, September 15th. This represents a $1.52 annualized dividend and a dividend yield of 2.0%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.35. Sonic Automotive’s dividend payout ratio (DPR) is presently 33.78%.

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.