Sonic Automotive (NYSE:SAH) Sets New 12-Month High – Still a Buy?

Shares of Sonic Automotive, Inc. (NYSE:SAH) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $68.40 and last traded at $68.40, with a volume of 134 shares trading hands. The stock had previously closed at $66.57.

Analyst Ratings Changes

SAH has been the topic of several research analyst reports. Stephens initiated coverage on shares of Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price objective on the stock. Bank of America dropped their price target on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Seaport Res Ptn upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. Finally, JPMorgan Chase & Co. raised their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, September 10th. Three equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $67.40.

Sonic Automotive Stock Down 0.3 %

The company has a debt-to-equity ratio of 1.87, a current ratio of 1.11 and a quick ratio of 0.35. The stock has a market cap of $2.37 billion, a price-to-earnings ratio of 12.35 and a beta of 1.61. The business has a fifty day moving average of $59.00 and a 200 day moving average of $57.92.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Thursday, October 24th. The company reported $1.26 earnings per share (EPS) 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 business had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. During the same quarter in the prior year, the company posted $2.02 earnings per share. The company’s revenue for the quarter was down 4.2% on a year-over-year basis. On average, equities analysts predict that Sonic Automotive, Inc. will post 5.6 earnings per share for the current year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.02%. The ex-dividend date is Friday, December 13th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s dividend payout ratio (DPR) is 21.35%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Westwood Holdings Group Inc. increased its position in Sonic Automotive by 12.6% during the first quarter. Westwood Holdings Group Inc. now owns 630,450 shares of the company’s stock worth $35,898,000 after acquiring an additional 70,540 shares during the period. Millennium Management LLC increased its holdings in shares of Sonic Automotive by 3.8% during the 2nd quarter. Millennium Management LLC now owns 456,588 shares of the company’s stock worth $24,870,000 after purchasing an additional 16,556 shares during the period. Victory Capital Management Inc. raised its position in shares of Sonic Automotive by 524.4% during the second quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock valued at $5,480,000 after buying an additional 84,489 shares during the last quarter. Squarepoint Ops LLC lifted its stake in shares of Sonic Automotive by 679.8% in the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock valued at $5,175,000 after buying an additional 82,823 shares during the period. Finally, Renaissance Technologies LLC grew its position in Sonic Automotive by 26.8% during the second quarter. Renaissance Technologies LLC now owns 88,826 shares of the company’s stock worth $4,838,000 after buying an additional 18,800 shares in the last quarter. 46.92% of the stock is currently 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.