Sonic Automotive, Inc. (NYSE:SAH) Receives Average Recommendation of “Hold” from Analysts

Shares of Sonic Automotive, Inc. (NYSE:SAH) have received a consensus recommendation of “Hold” from the eleven brokerages that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $83.00.

A number of research analysts have issued reports on the company. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Barclays lifted their price objective on Sonic Automotive from $67.00 to $77.00 and gave the company an “equal weight” rating in a report on Tuesday, May 5th. UBS Group assumed coverage on Sonic Automotive in a report on Wednesday, May 27th. They set a “buy” rating and a $90.00 price objective for the company. Bank of America assumed coverage on Sonic Automotive in a report on Wednesday, March 4th. They set a “neutral” rating for the company. Finally, Morgan Stanley set a $72.00 price objective on Sonic Automotive in a report on Thursday, May 7th.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SAH. Goldman Sachs Group Inc. raised its holdings in shares of Sonic Automotive by 124.9% in the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock valued at $20,239,000 after buying an additional 197,336 shares during the last quarter. Heartland Advisors Inc. bought a new position in shares of Sonic Automotive in the first quarter valued at about $8,450,000. Bridgeway Capital Management LLC bought a new position in shares of Sonic Automotive in the fourth quarter valued at about $7,384,000. Qube Research & Technologies Ltd bought a new position in shares of Sonic Automotive in the third quarter valued at about $7,450,000. Finally, Vanguard Group Inc. raised its holdings in shares of Sonic Automotive by 6.2% in the third quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock valued at $125,278,000 after buying an additional 96,836 shares during the last quarter. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Stock Up 1.1%

SAH opened at $84.82 on Wednesday. Sonic Automotive has a fifty-two week low of $54.11 and a fifty-two week 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’s fifty day moving average price is $72.19 and its two-hundred day moving average price is $65.99. The company has a market capitalization of $2.68 billion, a P/E ratio of 27.01, a P/E/G ratio of 1.92 and a beta of 0.88.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.40 by $0.22. The company had revenue of $3.69 billion during the quarter, compared to analysts’ expectations of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The business’s revenue was up 1.0% on a year-over-year basis. During the same period last year, the business earned $1.48 earnings per share. On average, analysts anticipate that Sonic Automotive will post 6.92 EPS for the current year.

Sonic Automotive Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be issued a $0.41 dividend. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, June 15th. Sonic Automotive’s dividend payout ratio (DPR) is presently 48.41%.

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.