Sonic Automotive (NYSE:SAH) Shares Gap Up – Here’s Why

Shares of Sonic Automotive, Inc. (NYSE:SAH) gapped up before the market opened on Thursday . The stock had previously closed at $78.69, but opened at $83.57. Sonic Automotive shares last traded at $83.5640, with a volume of 3,895 shares.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on SAH shares. Barclays upped their price target on Sonic Automotive from $67.00 to $77.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 5th. JPMorgan Chase & Co. boosted their price objective on Sonic Automotive from $67.00 to $77.00 and gave the stock an “underweight” rating in a report on Thursday, May 7th. Citigroup boosted their price objective on Sonic Automotive from $82.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, May 11th. UBS Group started coverage on Sonic Automotive in a report on Wednesday. They set a “buy” rating and a $90.00 price objective for the company. Finally, Morgan Stanley set a $72.00 price objective on Sonic Automotive in a report on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $83.00.

Sonic Automotive Trading Up 1.1%

The company has a market capitalization of $2.67 billion, a P/E ratio of 26.92, a price-to-earnings-growth ratio of 1.84 and a beta of 0.89. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The firm has a fifty day moving average price of $70.82 and a 200-day moving average price of $65.54.

Sonic Automotive (NYSE:SAH) last released its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.22. The company had revenue of $3.69 billion during the quarter, compared to analyst estimates of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.Sonic Automotive’s quarterly revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.48 earnings per share. On average, equities research analysts anticipate that Sonic Automotive, Inc. will post 6.79 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, July 15th. Stockholders of record on Monday, June 15th will be issued a $0.41 dividend. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, June 15th. Sonic Automotive’s dividend payout ratio is currently 52.23%.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors and hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. grew its holdings in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares during the period. Camelot Portfolios LLC bought a new position in Sonic Automotive during the fourth quarter valued at $41,000. Torren Management LLC bought a new position in Sonic Automotive during the fourth quarter valued at $50,000. Aster Capital Management DIFC Ltd bought a new position in Sonic Automotive during the third quarter valued at $63,000. Finally, National Bank of Canada FI bought a new position in Sonic Automotive during the third quarter valued at $78,000. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.