Sonic Automotive, Inc. (NYSE:SAH) Stock Has Consensus Target Price of $84.75 According to Analysts

Sonic Automotive, Inc. (NYSE:SAH) has been assigned an average recommendation of “Hold” from the ten brokerages that are currently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $81.62.

Several analysts recently commented on the stock. Needham & Company LLC decreased their price target on shares of Sonic Automotive from $139.00 to $96.00 and set a “buy” rating for the company in a report on Friday, October 30th. JPMorgan Chase & Co. decreased their price objective on shares of Sonic Automotive from $63.00 to $58.00 and set an “underweight” rating on the stock in a report on Wednesday. Citigroup cut their price target on shares of Sonic Automotive from $115.00 to $98.00 and set a “buy” rating on the stock in a research note on Monday. Stephens set a $89.00 price target on Sonic Automotive in a report on Monday, July 13th. Finally, Seaport Research Partners lowered shares of Sonic Automotive from a “buy” rating to a “neutral” rating and raised their target price for the company from $185.00 to $205.00 in a report on Friday, July 17th.

Sonic Automotive Stock Performance

Shares of SAH opened at $63.88 on Friday. The company has a debt-to-equity ratio of 1.74, a quick ratio of 0.20 and a current ratio of 0.95. The company has a market capitalization of $2.02 billion, a price-to-earnings ratio of 10.27, a PEG ratio of 1.22 and a beta of 0.98. The company’s 50 day simple moving average is $67.00 and its 200 day simple moving average is $73.08. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $113.67.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.30 EPS for the quarter, missing the consensus estimate of $1.66 by ($0.36). The company had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $4.03 billion. Sonic Automotive had a net margin of 1.33% and a return on equity of 20.05%. The company’s revenue for the quarter was up .4% compared to the same quarter last year. During the same period last year, the business earned $1.41 earnings per share. On average, sell-side analysts predict that Sonic Automotive will post 6.42 EPS for the current year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.41 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. Sonic Automotive’s payout ratio is currently 26.37%.

Insider Activity

In other news, major shareholder Paul P. Rusnak purchased 12,555 shares of the company’s stock in a transaction that occurred on Wednesday, October 14th. The shares were bought at an average cost of $59.90 per share, with a total value of $752,044.50. Following the completion of the transaction, the insider directly owned 5,176,776 shares of the company’s stock, valued at approximately $310,088,882.40. This trade represents a 0.24% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last three months, insiders have acquired 76,776 shares of company stock valued at $4,584,694. Corporate insiders own 43.68% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Hsbc Holdings PLC raised its holdings in shares of Sonic Automotive by 106.2% during the 2nd quarter. Hsbc Holdings PLC now owns 27,871 shares of the company’s stock valued at $2,328,000 after buying an additional 14,352 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Sonic Automotive by 3.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company’s stock worth $90,088,000 after buying an additional 48,599 shares during the last quarter. First Trust Advisors LP lifted its holdings in Sonic Automotive by 80.5% in the first quarter. First Trust Advisors LP now owns 37,576 shares of the company’s stock worth $2,577,000 after buying an additional 16,753 shares during the period. Empowered Funds LLC lifted its holdings in shares of 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 last quarter. Finally, Denali Advisors LLC purchased a new stake in Sonic Automotive during the 2nd quarter valued at $4,799,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

About Sonic Automotive

Sonic Automotive, Inc is a U.S.-based automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, maintenance and repair services, replacement parts, and collision-repair services. Sonic Automotive also operates EchoPark Automotive, a used-vehicle business focused on offering pre-owned vehicles and related finance and service products through dedicated retail locations.

Founded in 1997 by automotive entrepreneur O.