Sonic Automotive (NYSE:SAH) Shares Cross Above Two Hundred Day Moving Average – What’s Next?

Sonic Automotive, Inc. (NYSE:SAH) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $59.88 and traded as high as $63.93. Sonic Automotive shares last traded at $63.36, with a volume of 163,659 shares traded.

Analysts Set New Price Targets

A number of research firms have recently weighed in on SAH. Needham & Company LLC upped their price target on shares of Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Morgan Stanley raised shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Bank of America dropped 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 note on Monday, October 14th. Finally, Seaport Res Ptn upgraded shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. Two research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $67.40.

Sonic Automotive Price Performance

The stock has a market capitalization of $2.17 billion, a P/E ratio of 11.27 and a beta of 1.67. The stock’s fifty day moving average is $65.12 and its 200-day moving average is $59.97. The company has a debt-to-equity ratio of 1.87, a current ratio of 1.11 and a quick ratio of 0.35.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings results 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 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 the consensus estimate of $3.55 billion. During the same quarter last year, the company earned $2.02 earnings per share. The firm’s revenue was down 4.2% on a year-over-year basis. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 5.6 earnings per share for the current year.

Sonic Automotive Increases Dividend

The company 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 dividend on an annualized basis and a yield of 2.21%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date is Friday, December 13th. Sonic Automotive’s dividend payout ratio is 24.91%.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently bought and sold shares of the company. Barclays PLC lifted its stake in shares of Sonic Automotive by 346.1% in the third quarter. Barclays PLC now owns 24,413 shares of the company’s stock valued at $1,427,000 after buying an additional 18,940 shares during the period. Harbor Capital Advisors Inc. lifted its stake in shares of Sonic Automotive by 124.7% in the third quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock valued at $3,239,000 after buying an additional 30,731 shares during the period. Intech Investment Management LLC lifted its stake in shares of Sonic Automotive by 418.9% in the third quarter. Intech Investment Management LLC now owns 21,692 shares of the company’s stock valued at $1,269,000 after buying an additional 17,512 shares during the period. Victory Capital Management Inc. lifted its stake in shares of Sonic Automotive by 524.4% in 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 period. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in shares of Sonic Automotive in the third quarter valued at about $532,000. 46.92% of the stock is currently owned by 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.