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

Shares of Sonic Automotive, Inc. (NYSE:SAH) hit 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. The stock had previously closed at $66.53.

Analysts Set New Price Targets

SAH has been the subject of a number of research reports. Stephens started coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective for the company. Needham & Company LLC increased 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. Bank of America dropped their price objective 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. JPMorgan Chase & Co. upped their price objective 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. Finally, Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $40.00 to $58.00 in a report on Wednesday, September 25th. Three research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $67.40.

Sonic Automotive Trading Up 1.2 %

The company has a market cap of $2.24 billion, a P/E ratio of 11.68 and a beta of 1.61. 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 stock’s 50 day moving average is $57.63 and its 200-day moving average is $57.55.

Sonic Automotive (NYSE:SAH) last issued its 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). The firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The company’s quarterly revenue was down 4.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.02 EPS. Research analysts anticipate that Sonic Automotive, Inc. will post 5.74 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.13%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Friday, December 13th. Sonic Automotive’s dividend payout ratio (DPR) is currently 21.35%.

Institutional Investors Weigh In On Sonic Automotive

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

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.