Sonic Automotive (NYSE:SAH) Receives Buy Rating from Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of Sonic Automotive (NYSE:SAH) in a research note released on Thursday,Benzinga reports. They currently have a $74.00 target price on the stock.

Other equities analysts have also recently issued research reports about the company. Bank of America reduced their target price on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a report on Monday, October 14th. Seaport Res Ptn raised Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. Finally, Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $40.00 to $58.00 in a report on Wednesday, September 25th. Two equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $67.40.

Sonic Automotive Price Performance

Shares of Sonic Automotive stock opened at $68.30 on Thursday. The company has a quick ratio of 0.35, a current ratio of 1.11 and a debt-to-equity ratio of 1.87. Sonic Automotive has a twelve month low of $47.82 and a twelve month high of $70.88. The business has a 50-day moving average price of $65.50 and a 200 day moving average price of $60.23. The firm has a market cap of $2.34 billion, a PE ratio of 12.15 and a beta of 1.67.

Sonic Automotive (NYSE:SAH) last announced its earnings results on Thursday, October 24th. The company reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17). Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The firm had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.55 billion. During the same period in the previous year, the company earned $2.02 EPS. Sonic Automotive’s revenue was down 4.2% compared to the same quarter last year. Sell-side analysts predict that Sonic Automotive will post 5.6 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, January 15th. Investors of record on Friday, December 13th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend was Friday, December 13th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s dividend payout ratio (DPR) is currently 24.91%.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Millennium Management LLC increased its holdings in shares of Sonic Automotive by 3.8% in the second quarter. Millennium Management LLC now owns 456,588 shares of the company’s stock valued at $24,870,000 after purchasing an additional 16,556 shares during the last quarter. Squarepoint Ops LLC grew its position in Sonic Automotive by 679.8% in the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock worth $5,175,000 after acquiring an additional 82,823 shares during the period. Renaissance Technologies LLC grew its position in Sonic Automotive by 26.8% in the second quarter. Renaissance Technologies LLC now owns 88,826 shares of the company’s stock worth $4,838,000 after acquiring an additional 18,800 shares during the period. Phocas Financial Corp. purchased a new position in Sonic Automotive in the third quarter worth approximately $3,645,000. Finally, Harbor Capital Advisors Inc. grew its position in Sonic Automotive by 1.8% in the fourth quarter. Harbor Capital Advisors Inc. now owns 56,361 shares of the company’s stock worth $3,570,000 after acquiring an additional 978 shares during the period. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.