Sonic Automotive (NYSE:SAH) Sets New 1-Year High – Time to Buy?

Sonic Automotive, Inc. (NYSE:SAH) shares reached a new 52-week high on Tuesday . The stock traded as high as $66.54 and last traded at $66.35, with a volume of 3838 shares traded. The stock had previously closed at $66.53.

Analysts Set New Price Targets

Several research firms have issued reports on SAH. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Bank of America dropped their price objective on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a report on Monday, October 14th. Needham & Company LLC lifted their target price on Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a report on Friday, October 25th. Stephens started coverage on Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target on the stock. Finally, JPMorgan Chase & Co. raised their price objective 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. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, Sonic Automotive currently has a consensus rating of “Moderate Buy” and a consensus target price of $67.40.

Sonic Automotive Price Performance

The firm has a market capitalization of $2.24 billion, a P/E ratio of 11.68 and a beta of 1.61. The business’s 50-day simple moving average is $57.63 and its 200 day simple moving average is $57.55. 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 (NYSE:SAH) last posted its quarterly earnings results on Thursday, October 24th. The company reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.43 by ($0.17). Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The business had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter in the previous year, the company earned $2.02 earnings per share. The business’s quarterly revenue was down 4.2% on a year-over-year basis. Sell-side analysts forecast that Sonic Automotive, Inc. will post 5.74 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. Investors of record on Friday, December 13th will be issued a dividend of $0.35 per share. 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 2.13%. The ex-dividend date is Friday, December 13th. Sonic Automotive’s dividend payout ratio is currently 21.35%.

Institutional Trading of Sonic Automotive

Large investors have recently modified their holdings of the business. Allspring Global Investments Holdings LLC bought a new stake in Sonic Automotive in the first quarter valued at $30,000. Innealta Capital LLC bought a new stake in shares of Sonic Automotive during the 2nd quarter valued at about $41,000. AM Squared Ltd purchased a new position in shares of Sonic Automotive during the second quarter valued at about $82,000. Point72 DIFC Ltd raised its stake in Sonic Automotive by 6.9% in the second quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after buying an additional 187 shares in the last quarter. Finally, Intech Investment Management LLC purchased a new stake in Sonic Automotive in the second quarter worth about $228,000. 46.92% of the stock is 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.