Sonic Automotive (NYSE:SAH) Reaches New 1-Year High – Time to Buy?

Sonic Automotive, Inc. (NYSE:SAH) reached a new 52-week high on Tuesday . The stock traded as high as $66.54 and last traded at $66.35, with a volume of 3838 shares trading hands. The stock had previously closed at $66.53.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Needham & Company LLC lifted their target price on Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a report on Friday, October 25th. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Bank of America decreased their price target on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, October 14th. Stephens assumed coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective for the company. Finally, JPMorgan Chase & Co. lifted their price objective on Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $67.40.

Sonic Automotive Price Performance

The firm has a 50 day simple moving average of $57.41 and a 200-day simple moving average of $57.48. The company has a quick ratio of 0.35, a current ratio of 1.11 and a debt-to-equity ratio of 1.87. The company has a market cap of $2.21 billion, a PE ratio of 11.83 and a beta of 1.61.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, October 24th. The company reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.43 by ($0.17). Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The company had revenue of $3.49 billion during the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter last year, the firm earned $2.02 EPS. Sonic Automotive’s revenue for the quarter was down 4.2% on a year-over-year basis. As a group, research analysts predict that Sonic Automotive, Inc. will post 5.74 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, December 13th. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a yield of 2.16%. Sonic Automotive’s payout ratio is presently 24.91%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Westwood Holdings Group Inc. increased its position 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 worth $35,898,000 after purchasing an additional 70,540 shares in the last quarter. Victory Capital Management Inc. lifted its stake in Sonic Automotive by 524.4% during the 2nd 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. Harbor Capital Advisors Inc. lifted its stake in Sonic Automotive by 124.7% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock worth $3,239,000 after acquiring an additional 30,731 shares in the last quarter. Quantbot Technologies LP lifted its stake in Sonic Automotive by 109.1% during the 1st quarter. Quantbot Technologies LP now owns 17,623 shares of the company’s stock worth $1,003,000 after acquiring an additional 9,193 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC acquired a new position in Sonic Automotive during the 3rd quarter worth about $532,000. 46.92% of the stock is owned by institutional investors and hedge funds.

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.