Sonic Automotive (NYSE:SAH) Now Covered by Analysts at Bank of America

Bank of America began coverage on shares of Sonic Automotive (NYSE:SAH) in a report published on Wednesday morning. The brokerage issued a neutral rating on the stock.

Other analysts have also issued research reports about the stock. Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price on the stock in a research report on Thursday, November 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Zacks Research downgraded Sonic Automotive from a “hold” rating to a “strong sell” rating in a research report on Monday. Stephens reduced their target price on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 19th. Finally, Wall Street Zen lowered Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Sonic Automotive has a consensus rating of “Hold” and an average target price of $77.50.

Sonic Automotive Trading Up 2.1%

Sonic Automotive stock opened at $63.92 on Wednesday. The stock has a 50-day moving average price of $62.35 and a 200 day moving average price of $68.05. Sonic Automotive has a 52 week low of $52.00 and a 52 week high of $89.62. The stock has a market cap of $2.15 billion, a PE ratio of 18.86 and a beta of 0.91. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80.

Sonic Automotive (NYSE:SAH) last released its earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). The firm had revenue of $3.87 billion during the quarter, compared to analysts’ expectations of $3.94 billion. Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. Sonic Automotive’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter last year, the company posted $1.51 earnings per share. Equities research analysts predict that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Friday, March 13th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, March 13th. Sonic Automotive’s payout ratio is 44.84%.

Insider Activity at Sonic Automotive

In other news, major shareholder Paul P. Rusnak acquired 48,540 shares of Sonic Automotive stock in a transaction dated Friday, February 13th. The shares were acquired at an average cost of $59.92 per share, with a total value of $2,908,516.80. Following the purchase, the insider directly owned 5,088,519 shares of the company’s stock, valued at approximately $304,904,058.48. This trade represents a 0.96% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In the last quarter, insiders bought 100,000 shares of company stock valued at $5,994,472. Company insiders own 42.65% of the company’s stock.

Institutional Trading of Sonic Automotive

A number of institutional investors and hedge funds have recently bought and sold shares of SAH. Royal Bank of Canada lifted its position in Sonic Automotive by 37.1% during the first quarter. Royal Bank of Canada now owns 13,946 shares of the company’s stock valued at $795,000 after buying an additional 3,777 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Sonic Automotive by 13.6% in the 1st quarter. AQR Capital Management LLC now owns 23,310 shares of the company’s stock valued at $1,328,000 after acquiring an additional 2,793 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Sonic Automotive by 5.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock valued at $504,000 after acquiring an additional 483 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in Sonic Automotive by 124.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after purchasing an additional 197,336 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Sonic Automotive by 15.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company’s stock valued at $2,204,000 after purchasing an additional 5,286 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

About Sonic Automotive

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.