Sonic Automotive (NYSE:SAH) Shares Gap Up After Earnings Beat

Sonic Automotive, Inc. (NYSE:SAH) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $51.12, but opened at $55.43. Sonic Automotive shares last traded at $56.27, with a volume of 99,659 shares traded.

The company reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.13. The firm had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $3.45 billion. Sonic Automotive had a return on equity of 27.69% and a net margin of 1.21%. The company’s quarterly revenue was down 2.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.33 earnings per share.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 15th. Stockholders of record on Friday, June 14th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.92%. The ex-dividend date of this dividend is Friday, June 14th. Sonic Automotive’s payout ratio is currently 24.59%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SAH. Morgan Stanley increased their target price on Sonic Automotive from $35.00 to $40.00 and gave the company an “underweight” rating in a report on Thursday, February 29th. StockNews.com cut Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Thursday, January 11th. Bank of America upgraded Sonic Automotive from an “underperform” rating to a “buy” rating and upped their price target for the stock from $55.00 to $68.00 in a research report on Friday. Finally, TheStreet upgraded Sonic Automotive from a “c+” rating to a “b” rating in a research report on Wednesday, March 6th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $56.00.

Institutional Trading of Sonic Automotive

Institutional investors have recently made changes to their positions in the business. Illinois Municipal Retirement Fund boosted its stake in Sonic Automotive by 3.4% during the fourth quarter. Illinois Municipal Retirement Fund now owns 9,596 shares of the company’s stock valued at $539,000 after buying an additional 315 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in Sonic Automotive by 16.6% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,132 shares of the company’s stock valued at $176,000 after buying an additional 447 shares during the last quarter. Allspring Global Investments Holdings LLC bought a new position in Sonic Automotive during the first quarter valued at approximately $30,000. Aigen Investment Management LP boosted its stake in Sonic Automotive by 6.5% during the fourth quarter. Aigen Investment Management LP now owns 9,946 shares of the company’s stock valued at $559,000 after buying an additional 611 shares during the last quarter. Finally, Mitsubishi UFJ Trust & Banking Corp boosted its stake in Sonic Automotive by 12.4% during the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 6,128 shares of the company’s stock valued at $293,000 after buying an additional 678 shares during the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive Stock Performance

The business has a 50 day moving average of $52.53 and a 200 day moving average of $52.00. The company has a market capitalization of $2.12 billion, a P/E ratio of 12.78 and a beta of 1.82. The company has a quick ratio of 0.41, a current ratio of 1.10 and a debt-to-equity ratio of 2.10.

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.