Sonic Automotive, Inc. (NYSE:SAH) Given Consensus Rating of “Hold” by Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been given a consensus rating of “Hold” by the eleven ratings firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $81.6250.

SAH has been the subject of a number of analyst reports. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Needham & Company LLC restated a “buy” rating and set a $90.00 price objective on shares of Sonic Automotive in a research note on Tuesday, March 31st. Morgan Stanley set a $72.00 price objective on Sonic Automotive in a report on Thursday, May 7th. JPMorgan Chase & Co. upped their target price on Sonic Automotive from $67.00 to $77.00 and gave the company an “underweight” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings upgraded Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th.

Insider Activity

In related news, President Jeff Dyke sold 50,000 shares of the firm’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $82.97, for a total value of $4,148,500.00. Following the sale, the president directly owned 111,622 shares of the company’s stock, valued at $9,261,277.34. This trade represents a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 100,000 shares of company stock valued at $8,408,160. Company insiders own 43.68% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. increased its position in Sonic Automotive by 992.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares in the last quarter. Camelot Portfolios LLC acquired a new stake in Sonic Automotive in the fourth quarter valued at approximately $41,000. Torren Management LLC acquired a new stake in Sonic Automotive in the fourth quarter valued at approximately $50,000. Aster Capital Management DIFC Ltd bought a new stake in shares of Sonic Automotive during the third quarter worth $63,000. Finally, National Bank of Canada FI bought a new stake in shares of Sonic Automotive during the third quarter worth $78,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Stock Up 0.7%

SAH opened at $83.66 on Friday. The stock’s fifty day simple moving average is $79.86 and its 200 day simple moving average is $69.18. Sonic Automotive has a 1-year low of $54.11 and a 1-year high of $89.62. The stock has a market cap of $2.64 billion, a PE ratio of 26.64, a price-to-earnings-growth ratio of 1.91 and a beta of 0.89. The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.40 by $0.22. The company had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The firm’s revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.48 earnings per share. As a group, research analysts expect that Sonic Automotive will post 6.92 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. Shareholders of record on Monday, June 15th will be issued a $0.41 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. Sonic Automotive’s dividend payout ratio (DPR) is 52.23%.

About Sonic Automotive

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.