Sonic Automotive (NYSE:SAH) Sets New 1-Year High – Still a Buy?

Sonic Automotive, Inc. (NYSE:SAH) hit a new 52-week high on Wednesday . The company traded as high as $72.90 and last traded at $69.55, with a volume of 675 shares changing hands. The stock had previously closed at $70.08.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on SAH shares. Needham & Company LLC reissued a “buy” rating and set a $74.00 price target on shares of Sonic Automotive in a research report on Thursday, January 16th. JPMorgan Chase & Co. decreased their price target on shares of Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating for the company in a report on Friday, January 17th. Bank of America dropped their price objective on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, October 14th. Seaport Res Ptn upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research note on Thursday, November 21st. Finally, Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their price target for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $67.20.

Sonic Automotive Trading Down 1.8 %

The company has a debt-to-equity ratio of 1.87, a current ratio of 1.11 and a quick ratio of 0.35. The stock has a market capitalization of $2.35 billion, a price-to-earnings ratio of 12.24 and a beta of 1.67. The business has a fifty day moving average of $65.79 and a 200-day moving average of $60.71.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Thursday, October 24th. The company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17). The business had revenue of $3.49 billion for the quarter, compared to the consensus estimate of $3.55 billion. Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The company’s quarterly revenue was down 4.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.02 earnings per share. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 5.61 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 15th. Investors of record on Friday, December 13th were given a dividend of $0.35 per share. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Friday, December 13th. This represents a $1.40 dividend on an annualized basis and a yield of 2.04%. Sonic Automotive’s dividend payout ratio (DPR) is presently 24.91%.

Institutional Investors Weigh In On Sonic Automotive

A number of hedge funds and other institutional investors have recently made changes to their positions in SAH. Squarepoint Ops LLC increased its holdings in Sonic Automotive by 679.8% in the second quarter. Squarepoint Ops LLC now owns 95,006 shares of the company’s stock worth $5,175,000 after buying an additional 82,823 shares during the last quarter. Phocas Financial Corp. bought a new stake in Sonic Automotive in the third quarter worth $3,645,000. Marshall Wace LLP lifted its position in shares of Sonic Automotive by 831.1% in the second quarter. Marshall Wace LLP now owns 35,969 shares of the company’s stock worth $1,959,000 after buying an additional 32,106 shares during the last quarter. Harbor Capital Advisors Inc. raised its stake in shares of Sonic Automotive by 124.7% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock valued at $3,239,000 after acquiring an additional 30,731 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Sonic Automotive in the 2nd quarter worth approximately $1,351,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

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.