Sonic Automotive (NYSE:SAH) Receives Buy Rating from Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Sonic Automotive (NYSE:SAH) in a research report sent to investors on Thursday,Benzinga reports. They currently have a $74.00 target price on the stock.

A number of other analysts have also recently commented on SAH. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Seaport Res Ptn raised Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. Finally, Bank of America lowered their price target on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, October 14th. Two investment 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 company. According to data from MarketBeat, Sonic Automotive presently has a consensus rating of “Moderate Buy” and an average target price of $67.40.

Sonic Automotive Stock Down 0.3 %

Shares of SAH stock opened at $68.30 on Thursday. Sonic Automotive has a 1-year low of $47.82 and a 1-year high of $70.88. The stock’s fifty day moving average price is $65.50 and its 200 day moving average price is $60.23. 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 company has a market cap of $2.34 billion, a price-to-earnings ratio of 12.15 and a beta of 1.67.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, October 24th. The company reported $1.26 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 firm had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.55 billion. During the same period in the prior year, the firm posted $2.02 EPS. The business’s revenue was down 4.2% compared to the same quarter last year. On average, research analysts expect that Sonic Automotive will post 5.6 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.05%. The ex-dividend date was Friday, December 13th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s payout ratio is 24.91%.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors and hedge funds have recently modified their holdings of the stock. Barclays PLC lifted its holdings in shares of Sonic Automotive by 346.1% in the 3rd 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. increased its stake in shares of Sonic Automotive by 124.7% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock valued at $3,239,000 after purchasing an additional 30,731 shares in the last quarter. Intech Investment Management LLC increased its stake in shares of Sonic Automotive by 418.9% in the 3rd quarter. Intech Investment Management LLC now owns 21,692 shares of the company’s stock valued at $1,269,000 after purchasing an additional 17,512 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new position in shares of Sonic Automotive in the 3rd quarter valued at about $532,000. Finally, Franklin Resources Inc. increased its stake in shares of Sonic Automotive by 6.7% in the 3rd quarter. Franklin Resources Inc. now owns 9,643 shares of the company’s stock valued at $530,000 after purchasing an additional 609 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.