Sonic Automotive (NYSE:SAH) Hits New 12-Month High – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $64.98 and last traded at $64.50, with a volume of 51180 shares. The stock had previously closed at $58.44.

Analyst Upgrades and Downgrades

SAH has been the topic of several recent research reports. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and upped their price objective for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th. Needham & Company LLC boosted their target price on shares of Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a report on Friday, October 25th. Stephens assumed coverage on shares of Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price target for the company. JPMorgan Chase & Co. increased their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Finally, Bank of America lowered their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a report on Monday, October 14th. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $67.40.

Sonic Automotive Price Performance

The company has a current ratio of 1.11, a quick ratio of 0.35 and a debt-to-equity ratio of 1.87. The company has a market capitalization of $2.21 billion, a PE ratio of 11.52 and a beta of 1.61. The stock’s 50-day moving average is $57.28 and its two-hundred day moving average is $57.21.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Thursday, October 24th. The company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17). Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The firm had revenue of $3.49 billion during the quarter, compared to analysts’ expectations of $3.55 billion. During the same period last year, the company earned $2.02 earnings per share. The business’s revenue for the quarter was down 4.2% compared to the same quarter last year. On average, equities analysts predict that Sonic Automotive, Inc. will post 5.73 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Friday, December 13th will be given a $0.35 dividend. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a yield of 2.17%. The ex-dividend date is Friday, December 13th. Sonic Automotive’s dividend payout ratio is 24.91%.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC purchased a new position in shares of Sonic Automotive during the first quarter worth approximately $30,000. Innealta Capital LLC purchased a new position in shares of Sonic Automotive during the second quarter worth approximately $41,000. AM Squared Ltd purchased a new position in Sonic Automotive during the second quarter valued at approximately $82,000. Point72 DIFC Ltd increased its holdings in Sonic Automotive by 6.9% during the second quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock valued at $158,000 after buying an additional 187 shares during the period. Finally, Intech Investment Management LLC purchased a new position in Sonic Automotive during the second quarter valued at approximately $228,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

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.