Sonic Automotive, Inc. (NYSE:SAH) Receives $77.50 Consensus Target Price from Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been given a consensus rating of “Hold” by the ten brokerages that are covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, five have given a hold rating and three 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 $77.50.

A number of brokerages recently issued reports on SAH. Bank of America assumed coverage on Sonic Automotive in a report on Wednesday, March 4th. They set a “neutral” rating on the stock. Zacks Research lowered Sonic Automotive from a “hold” rating to a “strong sell” rating in a report on Monday, March 2nd. Stephens decreased their price target on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 19th. JPMorgan Chase & Co. lowered their price target on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a report on Friday, January 16th. Finally, Barclays set a $67.00 price objective on shares of Sonic Automotive in a research note on Monday, February 23rd.

Insider Buying and Selling

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 48,540 shares of the firm’s stock in a transaction on Friday, February 13th. The shares were acquired at an average cost of $59.92 per share, for a total transaction of $2,908,516.80. Following the purchase, the insider directly owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. The trade was a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders bought 100,000 shares of company stock worth $5,994,472 in the last three months. 43.68% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SAH. Northwestern Mutual Wealth Management Co. raised its stake in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares in the last quarter. Camelot Portfolios LLC purchased a new position in Sonic Automotive in the 4th quarter worth approximately $41,000. Torren Management LLC bought a new position in shares of Sonic Automotive in the 4th quarter worth $50,000. Aster Capital Management DIFC Ltd bought a new position in shares of Sonic Automotive in the 3rd quarter worth $63,000. Finally, National Bank of Canada FI purchased a new stake in shares of Sonic Automotive during the 3rd quarter valued at $78,000. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive Stock Up 2.2%

Sonic Automotive stock opened at $66.74 on Friday. The firm has a 50 day simple moving average of $61.88 and a 200 day simple moving average of $65.95. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80. Sonic Automotive has a 1-year low of $52.00 and a 1-year high of $89.62. The firm has a market capitalization of $2.24 billion, a price-to-earnings ratio of 19.69, a P/E/G ratio of 1.93 and a beta of 0.91.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.01). Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%.The company had revenue of $3.87 billion for the quarter, compared to analysts’ expectations of $3.94 billion. During the same quarter in the prior year, the company earned $1.51 EPS. The company’s revenue was down .6% on a year-over-year basis. On average, analysts predict that Sonic Automotive will post 6.14 earnings per share for the current year.

Sonic Automotive Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 13th will be given a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, March 13th. Sonic Automotive’s dividend payout ratio (DPR) is 44.84%.

Sonic Automotive Company Profile

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.