Sonic Automotive (NYSE:SAH) Shares Climb 9.4% – Still a Buy?

Sonic Automotive, Inc. (NYSE:SAH) shares traded up 9.4% on Thursday. The stock traded as high as $66.26 and last traded at $65.6750. Approximately 44,520 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 286,390 shares. The stock had previously closed at $60.05.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SAH. Barclays dropped their price objective on shares of Sonic Automotive from $87.00 to $75.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 6th. Bank of America increased their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Weiss Ratings upgraded Sonic Automotive from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Zacks Research lowered Sonic Automotive from a “hold” rating to a “strong sell” rating in a research report on Monday. Finally, Citigroup boosted their target price on Sonic Automotive from $95.00 to $115.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Five analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, Sonic Automotive presently has an average rating of “Hold” and a consensus price target of $90.12.

Sonic Automotive Trading Up 8.1%

The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The company has a market capitalization of $2.05 billion, a P/E ratio of 10.35, a P/E/G ratio of 1.00 and a beta of 0.92. The firm’s 50-day moving average price is $72.02 and its 200 day moving average price is $78.10.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The business had revenue of $3.93 billion for the quarter, compared to analysts’ expectations of $3.78 billion. During the same quarter last year, the firm earned $2.19 EPS. The firm’s revenue for the quarter was up 7.6% compared to the same quarter last year. As a group, equities research analysts predict that Sonic Automotive, Inc. will post 6.81 earnings per share for the current year.

Sonic Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 15th. Sonic Automotive’s payout ratio is currently 26.16%.

Insider Activity at Sonic Automotive

In related news, major shareholder Paul P. Rusnak acquired 13,701 shares of the stock in a transaction dated Wednesday, October 7th. The stock was purchased at an average cost of $59.78 per share, with a total value of $819,045.78. Following the completion of the purchase, the insider directly owned 5,164,221 shares in the company, valued at $308,717,131.38. This trade represents a 0.27% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders purchased 64,221 shares of company stock valued at $3,832,650 over the last three months. Corporate insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its holdings in Sonic Automotive by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company’s stock worth $90,088,000 after purchasing an additional 48,599 shares during the last quarter. Empowered Funds LLC grew its holdings in Sonic Automotive by 64.4% during the first quarter. Empowered Funds LLC now owns 131,302 shares of the company’s stock valued at $9,003,000 after purchasing an additional 51,420 shares during the period. Heartland Advisors Inc. purchased a new stake in Sonic Automotive in the 1st quarter worth about $8,450,000. Renaissance Technologies LLC increased its stake in shares of Sonic Automotive by 11.5% in the first quarter. Renaissance Technologies LLC now owns 88,126 shares of the company’s stock worth $6,043,000 after purchasing an additional 9,100 shares in the last quarter. Finally, Denali Advisors LLC purchased a new position in Sonic Automotive in the 2nd quarter valued at approximately $4,799,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

About Sonic Automotive

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.