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

Shares of Sonic Automotive, Inc. (NYSE:SAH) hit a new 52-week high on Monday . The stock traded as high as $78.93 and last traded at $78.43, with a volume of 429318 shares. The stock had previously closed at $77.62.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on SAH shares. Bank of America increased their price target on shares of Sonic Automotive from $80.00 to $94.00 and gave the stock a “buy” rating in a research report on Monday, June 16th. JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $80.00 to $65.00 and set an “overweight” rating for the company in a report on Thursday, March 27th. Needham & Company LLC reduced their price target on shares of Sonic Automotive from $93.00 to $74.00 and set a “buy” rating on the stock in a research report on Thursday, April 24th. Wall Street Zen cut shares of Sonic Automotive from a “strong-buy” rating to a “buy” rating in a report on Saturday. Finally, Citigroup began coverage on Sonic Automotive in a report on Wednesday, April 23rd. They issued a “neutral” rating and a $64.00 price target on the stock. Two investment analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $74.71.

Sonic Automotive Trading Up 0.6%

The firm has a market cap of $2.67 billion, a PE ratio of 11.21, a P/E/G ratio of 0.69 and a beta of 1.02. The company has a current ratio of 1.09, a quick ratio of 0.38 and a debt-to-equity ratio of 1.67. The company’s 50-day moving average is $67.38 and its 200 day moving average is $66.39.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.02. Sonic Automotive had a return on equity of 19.42% and a net margin of 1.69%. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same period last year, the company earned $1.36 earnings per share. Sonic Automotive’s quarterly revenue was up 7.9% compared to the same quarter last year. As a group, sell-side analysts predict that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Friday, June 13th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.78%. The ex-dividend date is Friday, June 13th. Sonic Automotive’s payout ratio is presently 19.94%.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 16,434 shares of the stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $70.03, for a total transaction of $1,150,873.02. Following the transaction, the president now owns 638,959 shares in the company, valued at $44,746,298.77. This trade represents a 2.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders have sold a total of 50,000 shares of company stock worth $3,502,062 in the last 90 days. 42.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Sonic Automotive by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 1,557,344 shares of the company’s stock worth $98,658,000 after purchasing an additional 20,058 shares during the last quarter. Westwood Holdings Group Inc. raised its stake in shares of Sonic Automotive by 26.2% in the first quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company’s stock valued at $36,525,000 after purchasing an additional 133,044 shares in the last quarter. Millennium Management LLC lifted its position in Sonic Automotive by 3.9% in the fourth quarter. Millennium Management LLC now owns 476,107 shares of the company’s stock worth $30,161,000 after purchasing an additional 17,965 shares during the period. Goldman Sachs Group Inc. boosted its stake in Sonic Automotive by 124.9% during the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after buying an additional 197,336 shares in the last quarter. Finally, Northern Trust Corp increased its holdings in Sonic Automotive by 0.3% in the 1st quarter. Northern Trust Corp now owns 291,941 shares of the company’s stock valued at $16,629,000 after buying an additional 808 shares during the period. 46.92% of the stock is currently owned by institutional investors and hedge funds.

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.