Sonic Automotive (NYSE:SAH) Reaches New 12-Month High – Should You Buy?

Sonic Automotive, Inc. (NYSE:SAH) shares reached a new 52-week high on Monday . The stock traded as high as $68.40 and last traded at $68.40, with a volume of 134 shares traded. The stock had previously closed at $66.57.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $40.00 to $58.00 in a research note on Wednesday, September 25th. Bank of America cut their target price on 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 raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. Stephens began coverage on shares of Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective on the stock. Finally, Needham & Company LLC lifted their price objective on shares of Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a research report on Friday, October 25th. Three investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $67.40.

Sonic Automotive Stock Performance

The company has a 50 day moving average price of $59.00 and a 200-day moving average price of $57.92. 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 $2.37 billion, a P/E ratio of 12.35 and a beta of 1.61.

Sonic Automotive (NYSE:SAH) last released its earnings results on Thursday, October 24th. The company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.43 by ($0.17). The company had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.55 billion. Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%. The firm’s quarterly revenue was down 4.2% on a year-over-year basis. During the same period in the previous year, the business posted $2.02 EPS. Equities analysts expect that Sonic Automotive, Inc. will post 5.6 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Friday, December 13th will be issued 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 is Friday, December 13th. This represents a $1.40 annualized dividend and a yield of 2.02%. Sonic Automotive’s payout ratio is presently 21.35%.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently bought and sold shares of the business. Innealta Capital LLC bought a new position in shares of Sonic Automotive during the 2nd quarter valued at about $41,000. Point72 Asia Singapore Pte. Ltd. boosted its holdings in Sonic Automotive by 100.3% during the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 1,196 shares of the company’s stock worth $70,000 after buying an additional 599 shares in the last quarter. AM Squared Ltd acquired a new position in Sonic Automotive in the second quarter worth approximately $82,000. Point72 DIFC Ltd increased its holdings in shares of Sonic Automotive by 6.9% in the second quarter. Point72 DIFC Ltd now owns 2,900 shares of the company’s stock valued at $158,000 after buying an additional 187 shares in the last quarter. Finally, Intech Investment Management LLC acquired a new stake in shares of Sonic Automotive during the 2nd quarter valued at $228,000. 46.92% of the stock is currently owned by institutional investors.

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.