Sonic Automotive (NYSE:SAH) Upgraded by Seaport Res Ptn to Strong-Buy Rating

Seaport Res Ptn upgraded shares of Sonic Automotive (NYSE:SAH) from a hold rating to a strong-buy rating in a report published on Thursday,Zacks.com reports.

SAH has been the topic of a number of other reports. JPMorgan Chase & Co. boosted their target price on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, September 10th. Bank of America dropped their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, October 14th. Morgan Stanley raised shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Stephens started coverage on shares of Sonic Automotive in a research note on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target for the company. Finally, Needham & Company LLC lifted their price target on shares of Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Three analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Sonic Automotive currently has an average rating of “Moderate Buy” and a consensus target price of $67.40.

Sonic Automotive Stock Performance

Shares of NYSE SAH opened at $66.57 on Thursday. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11. The company has a market cap of $2.28 billion, a P/E ratio of 11.85 and a beta of 1.61. The firm’s fifty day moving average is $58.72 and its two-hundred day moving average is $57.84. Sonic Automotive has a 52-week low of $47.82 and a 52-week high of $67.15.

Sonic Automotive (NYSE:SAH) last posted 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). Sonic Automotive had a return on equity of 21.27% and a net margin of 1.41%. The business had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.55 billion. During the same quarter last year, the firm earned $2.02 earnings per share. The business’s quarterly revenue was down 4.2% on a year-over-year basis. As a group, analysts anticipate that Sonic Automotive will post 5.63 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 2.10%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date is Friday, December 13th. Sonic Automotive’s payout ratio is 21.35%.

Institutional Investors Weigh In On Sonic Automotive

Several large investors have recently added to or reduced their stakes in the stock. State Board of Administration of Florida Retirement System raised its holdings in shares of Sonic Automotive by 85.3% in the 1st quarter. State Board of Administration of Florida Retirement System now owns 8,298 shares of the company’s stock valued at $451,000 after purchasing an additional 3,820 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of Sonic Automotive by 3.7% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 12,806 shares of the company’s stock worth $730,000 after acquiring an additional 458 shares in the last quarter. Westwood Holdings Group Inc. raised its stake in shares of Sonic Automotive by 12.6% during the 1st quarter. Westwood Holdings Group Inc. now owns 630,450 shares of the company’s stock worth $35,898,000 after acquiring an additional 70,540 shares in the last quarter. Harbor Capital Advisors Inc. raised its stake in shares of Sonic Automotive by 270.0% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 24,652 shares of the company’s stock worth $1,343,000 after acquiring an additional 17,989 shares in the last quarter. Finally, Innealta Capital LLC bought a new position in shares of Sonic Automotive during the 2nd quarter worth approximately $41,000. 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.