Brokerages Set Sonic Automotive, Inc. (NYSE:SAH) Price Target at $80.50

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been assigned a consensus rating of “Hold” from the ten analysts that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $82.1250.

A number of equities research analysts have weighed in on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Bank of America assumed coverage on Sonic Automotive in a report on Wednesday, March 4th. They issued a “neutral” rating on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sonic Automotive in a report on Friday, March 27th. Morgan Stanley set a $72.00 target price on Sonic Automotive in a report on Thursday, May 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of Sonic Automotive from $67.00 to $77.00 and gave the stock an “underweight” rating in a report on Thursday, May 7th.

Sonic Automotive Price Performance

Sonic Automotive stock opened at $76.19 on Friday. The stock’s fifty day moving average price is $67.79 and its two-hundred day moving average price is $64.56. Sonic Automotive has a one year low of $54.11 and a one year high of $89.62. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The firm has a market cap of $2.41 billion, a PE ratio of 24.27, a price-to-earnings-growth ratio of 1.67 and a beta of 0.89.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.40 by $0.22. The firm had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company’s revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.48 EPS. As a group, research analysts expect that Sonic Automotive will post 6.8 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Monday, June 15th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. Sonic Automotive’s payout ratio is currently 48.41%.

Insider Buying and Selling

In other news, major shareholder Paul P. Rusnak purchased 48,540 shares of the business’s stock in a transaction dated Friday, February 13th. The shares were purchased at an average cost of $59.92 per share, with a total value of $2,908,516.80. Following the completion of the purchase, the insider owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. This trade represents a 0.96% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 43.68% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds have recently added to or reduced their stakes in SAH. Goldman Sachs Group Inc. increased its position in Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock valued at $20,239,000 after acquiring an additional 197,336 shares during the period. Heartland Advisors Inc. bought a new stake in shares of Sonic Automotive in the first quarter worth $8,450,000. Bridgeway Capital Management LLC bought a new stake in shares of Sonic Automotive in the fourth quarter worth $7,384,000. Qube Research & Technologies Ltd acquired a new stake in Sonic Automotive in the third quarter valued at $7,450,000. Finally, Vanguard Group Inc. raised its position in Sonic Automotive by 6.2% during the 3rd quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock worth $125,278,000 after purchasing an additional 96,836 shares during the last quarter. 46.92% of the stock is currently 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.