Sonic Automotive (NYSE:SAH) Raised to Buy at StockNews.com

StockNews.com upgraded shares of Sonic Automotive (NYSE:SAH) from a hold rating to a buy rating in a report issued on Wednesday morning.

A number of other research firms have also recently issued reports on SAH. Needham & Company LLC restated a “buy” rating and set a $74.00 price objective on shares of Sonic Automotive in a report on Thursday, January 16th. Stephens raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 24th. Seaport Res Ptn raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 21st. Finally, JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating for the company in a report on Friday, January 17th. One investment analyst has rated the stock with a hold rating, four have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $67.20.

Sonic Automotive Stock Performance

NYSE SAH opened at $71.62 on Wednesday. The stock has a market capitalization of $2.45 billion, a PE ratio of 12.74 and a beta of 1.68. Sonic Automotive has a 1-year low of $47.82 and a 1-year high of $76.78. The business has a 50 day simple moving average of $67.79 and a two-hundred day simple moving average of $62.56. 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 Wednesday, February 12th. The company reported $1.51 EPS for the quarter, topping the consensus estimate of $1.46 by $0.05. Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. On average, research analysts predict that Sonic Automotive will post 5.54 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Investors of record on Friday, March 14th will be issued a $0.35 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.40 dividend on an annualized basis and a yield of 1.95%. Sonic Automotive’s payout ratio is 24.91%.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Inspire Investing LLC increased its holdings in shares of Sonic Automotive by 8.7% in the third quarter. Inspire Investing LLC now owns 7,036 shares of the company’s stock valued at $411,000 after purchasing an additional 561 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Sonic Automotive in the 3rd quarter worth $1,244,000. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Sonic Automotive during the 3rd quarter valued at about $532,000. Harbor Capital Advisors Inc. grew its holdings 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 purchasing an additional 30,731 shares during the period. Finally, GSA Capital Partners LLP increased its position in Sonic Automotive by 163.7% during the third quarter. GSA Capital Partners LLP now owns 32,235 shares of the company’s stock worth $1,885,000 after purchasing an additional 20,010 shares during the last quarter. 46.92% of the stock is owned by hedge funds and other 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.