Sonic Automotive (NYSE:SAH) Trading Up 3.6% – What’s Next?

Shares of Sonic Automotive, Inc. (NYSE:SAH) rose 3.6% during mid-day trading on Wednesday . The stock traded as high as $56.29 and last traded at $56.22. Approximately 7,124 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 194,811 shares. The stock had previously closed at $54.27.

Analyst Upgrades and Downgrades

SAH has been the subject of several analyst reports. Stephens started coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective for the company. Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. JPMorgan Chase & Co. boosted their target price on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday, September 10th. Bank of America reduced their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Finally, Needham & Company LLC started coverage on shares of Sonic Automotive in a research report on Tuesday, August 20th. They set a “buy” rating and a $73.00 price objective for the company. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $66.33.

Sonic Automotive Price Performance

The company has a fifty day simple moving average of $57.82 and a 200 day simple moving average of $56.57. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.36 and a current ratio of 1.10. The stock has a market capitalization of $1.89 billion, a price-to-earnings ratio of 10.03 and a beta of 1.60.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data on Monday, August 5th. The company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.38 by $0.09. The company had revenue of $3.45 billion during the quarter, compared to the consensus estimate of $3.56 billion. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. The company’s quarterly revenue was down 5.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.83 EPS. Equities research analysts forecast that Sonic Automotive, Inc. will post 5.67 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, October 15th. Stockholders of record on Friday, September 13th were paid a $0.30 dividend. The ex-dividend date of this dividend was Friday, September 13th. This represents a $1.20 annualized dividend and a dividend yield of 2.17%. Sonic Automotive’s dividend payout ratio is presently 22.18%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Point72 DIFC Ltd increased its holdings in Sonic Automotive by 6.9% during the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after purchasing an additional 187 shares in the last quarter. Inspire Investing LLC raised its position in Sonic Automotive by 3.4% in the 2nd quarter. Inspire Investing LLC now owns 6,475 shares of the company’s stock valued at $353,000 after buying an additional 211 shares during the last quarter. Arizona State Retirement System raised its position in Sonic Automotive by 10.8% in the 2nd quarter. Arizona State Retirement System now owns 4,324 shares of the company’s stock valued at $236,000 after buying an additional 420 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Sonic Automotive by 3.7% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 12,806 shares of the company’s stock worth $730,000 after acquiring an additional 458 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC purchased a new position in Sonic Automotive during the 1st quarter worth $30,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Company Profile

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.