Sonic Automotive (NYSE:SAH) Shares Gap Up After Better-Than-Expected Earnings

Sonic Automotive, Inc. (NYSE:SAH) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $51.12, but opened at $55.43. Sonic Automotive shares last traded at $56.27, with a volume of 99,659 shares trading hands.

The company reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.13. The company had revenue of $3.40 billion for the quarter, compared to analyst estimates of $3.45 billion. Sonic Automotive had a net margin of 1.21% and a return on equity of 27.69%. The firm’s quarterly revenue was down 2.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 EPS.

Sonic Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 15th. Stockholders of record on Friday, June 14th will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.20 annualized dividend and a dividend yield of 1.92%. Sonic Automotive’s payout ratio is currently 24.59%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on SAH. TheStreet upgraded shares of Sonic Automotive from a “c+” rating to a “b” rating in a report on Wednesday, March 6th. Morgan Stanley increased their price objective on shares of Sonic Automotive from $35.00 to $40.00 and gave the stock an “underweight” rating in a report on Thursday, February 29th. Bank of America upgraded shares of Sonic Automotive from an “underperform” rating to a “buy” rating and increased their price objective for the stock from $55.00 to $68.00 in a report on Friday. Finally, StockNews.com lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a report on Thursday, January 11th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $56.00.

Institutional Trading of Sonic Automotive

Several large investors have recently bought and sold shares of the company. Illinois Municipal Retirement Fund grew its position in Sonic Automotive by 3.4% in the fourth quarter. Illinois Municipal Retirement Fund now owns 9,596 shares of the company’s stock valued at $539,000 after acquiring an additional 315 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its position in Sonic Automotive by 16.6% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,132 shares of the company’s stock valued at $176,000 after acquiring an additional 447 shares in the last quarter. Allspring Global Investments Holdings LLC acquired a new stake in Sonic Automotive in the first quarter valued at approximately $30,000. Aigen Investment Management LP grew its position in Sonic Automotive by 6.5% in the fourth quarter. Aigen Investment Management LP now owns 9,946 shares of the company’s stock valued at $559,000 after acquiring an additional 611 shares in the last quarter. Finally, Mitsubishi UFJ Trust & Banking Corp grew its position in shares of Sonic Automotive by 12.4% during the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 6,128 shares of the company’s stock worth $293,000 after buying an additional 678 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Price Performance

The company has a debt-to-equity ratio of 2.10, a current ratio of 1.10 and a quick ratio of 0.41. The firm has a market cap of $2.12 billion, a price-to-earnings ratio of 12.78 and a beta of 1.82. The business’s 50-day moving average price is $52.53 and its two-hundred day moving average price is $52.00.

About Sonic Automotive

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.