Sonic Automotive (NYSE:SAH) Coverage Initiated by Analysts at Needham & Company LLC

Needham & Company LLC assumed coverage on shares of Sonic Automotive (NYSE:SAH) in a report published on Tuesday, MarketBeat reports. The firm issued a buy rating and a $73.00 price target on the stock.

SAH has been the topic of several other research reports. JPMorgan Chase & Co. raised shares of Sonic Automotive from a neutral rating to an overweight rating and boosted their price objective for the stock from $58.00 to $63.00 in a research note on Tuesday, August 6th. Bank of America reduced their price objective on shares of Sonic Automotive from $68.00 to $67.00 and set a buy rating on the stock in a research note on Monday, July 22nd. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company. According to MarketBeat, Sonic Automotive has an average rating of Moderate Buy and an average target price of $61.00.

Sonic Automotive Price Performance

Shares of SAH opened at $62.57 on Tuesday. The company has a quick ratio of 0.36, a current ratio of 1.10 and a debt-to-equity ratio of 2.04. The stock has a market cap of $2.13 billion, a PE ratio of 12.82 and a beta of 1.61. Sonic Automotive has a 12-month low of $41.19 and a 12-month high of $64.68. The business has a 50-day simple moving average of $56.72 and a two-hundred day simple moving average of $55.32.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Monday, August 5th. The company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.38 by $0.09. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The company had revenue of $3.45 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the prior year, the firm posted $1.83 earnings per share. The firm’s revenue was down 5.5% compared to the same quarter last year. Analysts anticipate that Sonic Automotive will post 5.84 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Friday, September 13th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Friday, September 13th. This represents a $1.20 annualized dividend and a yield of 1.92%. Sonic Automotive’s payout ratio is 24.59%.

Insider Activity at Sonic Automotive

In related news, CFO Heath Byrd sold 2,480 shares of the business’s stock in a transaction on Wednesday, June 12th. The shares were sold at an average price of $60.00, for a total value of $148,800.00. Following the transaction, the chief financial officer now owns 193,445 shares in the company, valued at $11,606,700. The transaction was disclosed in a document filed with the SEC, which is available through this link. In related news, CFO Heath Byrd sold 2,480 shares of the business’s stock in a transaction on Wednesday, June 12th. The shares were sold at an average price of $60.00, for a total value of $148,800.00. Following the transaction, the chief financial officer now owns 193,445 shares in the company, valued at $11,606,700. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, President Jeff Dyke sold 15,000 shares of the business’s stock in a transaction on Tuesday, May 28th. The shares were sold at an average price of $56.76, for a total transaction of $851,400.00. Following the completion of the transaction, the president now owns 161,622 shares in the company, valued at approximately $9,173,664.72. The disclosure for this sale can be found here. Insiders have sold a total of 54,041 shares of company stock worth $3,193,860 over the last quarter. Company insiders own 40.95% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Several institutional investors have recently made changes to their positions in the stock. Westwood Holdings Group Inc. raised its holdings in shares of Sonic Automotive by 12.6% during the first quarter. Westwood Holdings Group Inc. now owns 630,450 shares of the company’s stock valued at $35,898,000 after purchasing an additional 70,540 shares during the period. Millennium Management LLC increased its position in shares of Sonic Automotive by 3.8% during the second quarter. Millennium Management LLC now owns 456,588 shares of the company’s stock worth $24,870,000 after acquiring an additional 16,556 shares in the last quarter. Victory Capital Management Inc. increased its position in shares of Sonic Automotive by 524.4% during the second quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock worth $5,480,000 after acquiring an additional 84,489 shares in the last quarter. Squarepoint Ops LLC increased its position in shares of Sonic Automotive by 679.8% during the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock worth $5,175,000 after acquiring an additional 82,823 shares in the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of Sonic Automotive by 26.8% during the second quarter. Renaissance Technologies LLC now owns 88,826 shares of the company’s stock worth $4,838,000 after acquiring an additional 18,800 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

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.