Sonic Automotive, Inc. (NYSE:SAH) Receives $83.14 Consensus Target Price from Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have received a consensus rating of “Moderate Buy” from the nine brokerages that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and two have issued a strong buy rating on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $83.1429.

Several brokerages have weighed in on SAH. Needham & Company LLC reaffirmed a “buy” rating and issued a $95.00 target price on shares of Sonic Automotive in a research report on Wednesday, August 6th. JPMorgan Chase & Co. restated an “underweight” rating and set a $72.00 price target (up previously from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Morgan Stanley increased their price objective on shares of Sonic Automotive from $60.00 to $72.00 and gave the stock an “equal weight” rating in a report on Thursday, August 14th. Zacks Research upgraded shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, September 23rd. Finally, Citigroup boosted their target price on shares of Sonic Automotive from $81.00 to $82.00 and gave the company a “neutral” rating in a research note on Thursday, September 25th.

Sonic Automotive Stock Performance

Shares of NYSE SAH opened at $76.12 on Friday. The company has a quick ratio of 0.24, a current ratio of 1.03 and a debt-to-equity ratio of 1.78. The firm’s 50-day moving average price is $78.49 and its two-hundred day moving average price is $72.42. Sonic Automotive has a 52-week low of $52.00 and a 52-week high of $89.62. The stock has a market capitalization of $2.60 billion, a P/E ratio of 16.92 and a beta of 0.98.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, July 24th. The company reported $2.19 EPS for the quarter, beating the consensus estimate of $1.63 by $0.56. The company had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.66 billion. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The business’s revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.47 earnings per share. As a group, sell-side analysts forecast that Sonic Automotive will post 6.14 earnings per share for the current year.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 15th will be given a $0.38 dividend. The ex-dividend date is Monday, September 15th. This represents a $1.52 annualized dividend and a yield of 2.0%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.35. Sonic Automotive’s payout ratio is 33.78%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Teacher Retirement System of Texas raised its stake in shares of Sonic Automotive by 38.2% during the first quarter. Teacher Retirement System of Texas now owns 14,286 shares of the company’s stock valued at $814,000 after purchasing an additional 3,952 shares in the last quarter. SG Americas Securities LLC increased its stake in Sonic Automotive by 266.1% during the 1st quarter. SG Americas Securities LLC now owns 14,096 shares of the company’s stock valued at $803,000 after buying an additional 10,246 shares during the period. GAMMA Investing LLC increased its stake in Sonic Automotive by 6,802.4% during the 1st quarter. GAMMA Investing LLC now owns 11,734 shares of the company’s stock valued at $668,000 after buying an additional 11,564 shares during the period. American Century Companies Inc. raised its position in shares of Sonic Automotive by 23.0% during the 1st quarter. American Century Companies Inc. now owns 25,341 shares of the company’s stock worth $1,443,000 after buying an additional 4,745 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Sonic Automotive in the 1st quarter worth approximately $1,940,000. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive Company Profile

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.