Sonic Automotive (NYSE:SAH) Trading 6.6% Higher After Analyst Upgrade

Sonic Automotive, Inc. (NYSE:SAH) traded up 6.6% during trading on Wednesday after Barclays raised their price target on the stock from $77.00 to $92.00. Barclays currently has an equal weight rating on the stock. Sonic Automotive traded as high as $97.46 and last traded at $98.4660. 90,588 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 277,802 shares. The stock had previously closed at $92.38.

A number of other research analysts have also recently issued reports on the stock. UBS Group increased their target price on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a “buy” rating in a report on Friday. Morgan Stanley set a $72.00 price target on Sonic Automotive in a report on Thursday, May 7th. Stephens set a $89.00 price objective on Sonic Automotive in a report on Monday. Zacks Research upgraded Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $90.67.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the sale, the president owned 543,668 shares in the company, valued at approximately $46,331,386.96. This represents a 6.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 100,000 shares of company stock valued at $8,408,160. 43.68% of the stock is currently owned by corporate insiders.

Institutional Trading of Sonic Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its stake in Sonic Automotive by 992.5% in the 2nd 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 last quarter. Camelot Portfolios LLC acquired a new stake in shares of Sonic Automotive during the 4th quarter worth about $41,000. Torren Management LLC purchased a new stake in shares of Sonic Automotive during the fourth quarter worth about $50,000. National Bank of Canada FI purchased a new stake in shares of Sonic Automotive during the third quarter worth about $78,000. Finally, State of Wyoming acquired a new position in shares of Sonic Automotive in the first quarter valued at approximately $79,000. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive Stock Up 6.9%

The firm’s 50 day moving average is $82.42 and its 200-day moving average is $70.60. The firm has a market cap of $3.12 billion, a PE ratio of 31.44, a P/E/G ratio of 1.38 and a beta of 0.89. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.69 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same period in the previous year, the firm posted $1.48 EPS. Sonic Automotive’s revenue was up 1.0% on a year-over-year basis. As a group, equities research analysts expect that Sonic Automotive, Inc. will post 6.94 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.41 per share. 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 1.7%. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.38. Sonic Automotive’s dividend payout ratio is currently 52.23%.

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.