Sonic Automotive, Inc. (NYSE:SAH) Stock Has Average Price Target of $97.00 According to Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have earned a consensus recommendation of “Hold” from the ten analysts that are currently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $90.12.

SAH has been the subject of a number of research analyst reports. JPMorgan Chase & Co. decreased their price target on Sonic Automotive from $72.00 to $64.00 and set an “underweight” rating for the company in a research report on Tuesday, October 6th. Stephens set a $89.00 price objective on Sonic Automotive in a research report on Monday, July 13th. UBS Group reduced their price objective on Sonic Automotive from $107.00 to $74.00 and set a “buy” rating for the company in a research note on Wednesday. Needham & Company LLC raised their target price on Sonic Automotive from $90.00 to $139.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Weiss Ratings upgraded Sonic Automotive from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday.

Sonic Automotive Stock Down 1.9%

Sonic Automotive stock opened at $60.35 on Tuesday. Sonic Automotive has a fifty-two week low of $54.11 and a fifty-two week high of $113.67. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.25 and a current ratio of 1.01. The firm’s 50-day simple moving average is $73.63 and its 200 day simple moving average is $78.09. The stock has a market cap of $1.91 billion, a PE ratio of 9.63, a price-to-earnings-growth ratio of 0.99 and a beta of 0.92.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The firm had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same quarter last year, the business posted $2.19 EPS. The company’s revenue for the quarter was up 7.6% on a year-over-year basis. Research analysts predict that Sonic Automotive will post 6.81 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Sonic Automotive’s payout ratio is 26.16%.

Insider Buying and Selling

In other news, major shareholder Paul P. Rusnak acquired 27,756 shares of Sonic Automotive stock in a transaction on Monday, October 5th. The stock was acquired at an average cost of $59.76 per share, with a total value of $1,658,698.56. Following the completion of the acquisition, the insider owned 5,149,401 shares in the company, valued at approximately $307,728,203.76. This trade represents a 0.54% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders purchased a total of 64,221 shares of company stock valued at $3,832,650 in the last quarter. 43.68% of the stock is currently owned by corporate insiders.

Institutional Trading of Sonic Automotive

Hedge funds have recently made changes to their positions in the company. CoreCap Advisors LLC grew its stake in shares of Sonic Automotive by 15.5% during the 3rd quarter. CoreCap Advisors LLC now owns 1,550 shares of the company’s stock worth $94,000 after acquiring an additional 208 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Sonic Automotive in the 2nd quarter worth about $373,000. Ameritas Advisory Services LLC bought a new stake in Sonic Automotive in the 2nd quarter valued at about $88,000. Northwestern Mutual Wealth Management Co. raised its stake in Sonic Automotive by 14.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company’s stock valued at $390,000 after acquiring an additional 582 shares during the period. Finally, Denali Advisors LLC bought a new stake in Sonic Automotive in the 2nd quarter valued at about $4,799,000. 46.92% of the stock is currently owned by institutional investors.

About Sonic Automotive

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.