Sonic Automotive (NYSE:SAH) Trading 3.6% Higher – What’s Next?

Sonic Automotive, Inc. (NYSE:SAH)’s stock price rose 3.6% during trading on Wednesday . The stock traded as high as $56.29 and last traded at $56.22. Approximately 7,124 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 194,811 shares. The stock had previously closed at $54.27.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Stephens began coverage on shares of Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 target price on the stock. Morgan Stanley raised shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Bank of America reduced their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, October 14th. Needham & Company LLC started coverage on Sonic Automotive in a report on Tuesday, August 20th. They issued a “buy” rating and a $73.00 price objective for the company. Finally, JPMorgan Chase & Co. upped their price objective on shares of Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $66.33.

Sonic Automotive Price Performance

The company has a current ratio of 1.10, a quick ratio of 0.36 and a debt-to-equity ratio of 2.04. The firm has a market cap of $1.96 billion, a PE ratio of 10.60 and a beta of 1.60. The business has a fifty day moving average of $57.74 and a 200-day moving average of $56.57.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Monday, August 5th. The company reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.38 by $0.09. The company had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.56 billion. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. Sonic Automotive’s revenue was down 5.5% compared to the same quarter last year. During the same period last year, the business earned $1.83 earnings per share. As a group, research analysts predict that Sonic Automotive, Inc. will post 5.63 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. Stockholders of record on Friday, December 13th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.40 annualized dividend and a dividend yield of 2.44%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s dividend payout ratio is presently 22.18%.

Institutional Trading of Sonic Automotive

Institutional investors and hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC purchased a new position in Sonic Automotive in the 3rd quarter worth approximately $532,000. Assenagon Asset Management S.A. bought a new position in Sonic Automotive in the third quarter valued at $1,244,000. Inspire Investing LLC raised its position in Sonic Automotive by 8.7% during 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 in the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Sonic Automotive during the second quarter worth about $1,351,000. Finally, Point72 DIFC Ltd boosted its holdings in shares of Sonic Automotive by 6.9% in the 2nd quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock worth $158,000 after purchasing an additional 187 shares in the last quarter. Hedge funds and other institutional investors 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.