Sonic Automotive (NYSE:SAH) Reaches New 1-Year High After Better-Than-Expected Earnings

Sonic Automotive, Inc. (NYSE:SAH)’s stock price reached a new 52-week high on Friday following a stronger than expected earnings report. The stock traded as high as $60.88 and last traded at $60.88, with a volume of 128011 shares. The stock had previously closed at $56.67.

The company reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.13. Sonic Automotive had a return on equity of 28.06% and a net margin of 1.24%. The company had revenue of $3.40 billion during the quarter, compared to analysts’ expectations of $3.45 billion. During the same quarter in the previous year, the business earned $1.33 EPS. Sonic Automotive’s revenue was down 2.6% compared to the same quarter last year.

Sonic Automotive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 15th. Investors of record on Friday, June 14th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.90%. The ex-dividend date is Friday, June 14th. Sonic Automotive’s dividend payout ratio is currently 24.14%.

Analyst Ratings Changes

Several research analysts recently issued reports on SAH shares. Bank of America raised Sonic Automotive from an “underperform” rating to a “buy” rating and upped their target price for the company from $55.00 to $68.00 in a research report on Friday. StockNews.com downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Thursday, January 11th. Morgan Stanley increased their price target on Sonic Automotive from $35.00 to $40.00 and gave the stock an “underweight” rating in a research report on Thursday, February 29th. Finally, TheStreet raised Sonic Automotive from a “c+” rating to a “b” rating in a report on Wednesday, March 6th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, Sonic Automotive presently has a consensus rating of “Hold” and a consensus target price of $56.00.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Westwood Holdings Group Inc. acquired a new stake in shares of Sonic Automotive in the fourth quarter valued at approximately $31,473,000. Charles Schwab Investment Management Inc. increased its holdings in shares of Sonic Automotive by 4.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 381,211 shares of the company’s stock valued at $18,207,000 after purchasing an additional 16,117 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its stake in Sonic Automotive by 1,841.9% during the third quarter. Jacobs Levy Equity Management Inc. now owns 301,526 shares of the company’s stock worth $14,401,000 after acquiring an additional 285,999 shares during the last quarter. Schonfeld Strategic Advisors LLC raised its position in Sonic Automotive by 705.8% in the third quarter. Schonfeld Strategic Advisors LLC now owns 67,086 shares of the company’s stock valued at $3,204,000 after purchasing an additional 58,761 shares during the period. Finally, FMR LLC raised its position in Sonic Automotive by 2.0% in the third quarter. FMR LLC now owns 57,581 shares of the company’s stock valued at $2,750,000 after purchasing an additional 1,118 shares during the period. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Price Performance

The company has a quick ratio of 0.41, a current ratio of 1.10 and a debt-to-equity ratio of 2.10. The company has a market cap of $2.15 billion, a PE ratio of 12.70 and a beta of 1.82. The stock has a 50-day simple moving average of $52.33 and a 200 day simple moving average of $51.86.

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.