Sonic Automotive (NYSE:SAH) Shares Gap Up – Here’s Why

Sonic Automotive, Inc. (NYSE:SAH) gapped up before the market opened on Thursday . The stock had previously closed at $78.69, but opened at $83.57. Sonic Automotive shares last traded at $83.5640, with a volume of 3,895 shares changing hands.

Analyst Ratings Changes

SAH has been the topic of several research reports. Needham & Company LLC reissued a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research report on Tuesday, March 31st. UBS Group began coverage on shares of Sonic Automotive in a research report on Wednesday. They issued a “buy” rating and a $90.00 price target on the stock. JPMorgan Chase & Co. raised their price target on Sonic Automotive from $67.00 to $77.00 and gave the stock an “underweight” rating in a report on Thursday, May 7th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Finally, Bank of America began coverage on Sonic Automotive in a report on Wednesday, March 4th. They issued a “neutral” rating for the company. Four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Sonic Automotive presently has an average rating of “Hold” and an average target price of $83.00.

Sonic Automotive Stock Up 1.1%

The stock has a fifty day moving average price of $70.82 and a 200 day moving average price of $65.54. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The stock has a market capitalization of $2.67 billion, a P/E ratio of 26.92, a price-to-earnings-growth ratio of 1.84 and a beta of 0.89.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The firm had revenue of $3.69 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same period last year, the company earned $1.48 earnings per share. The business’s revenue for the quarter was up 1.0% on a year-over-year basis. On average, research analysts forecast that Sonic Automotive, Inc. will post 6.79 earnings per share for the current year.

Sonic Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be paid a dividend of $0.41 per share. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.38. This represents a $1.64 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Monday, June 15th. Sonic Automotive’s dividend payout ratio is 52.23%.

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its stake in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after buying an additional 397 shares during the period. Camelot Portfolios LLC purchased a new position in Sonic Automotive in the 4th quarter worth approximately $41,000. Torren Management LLC purchased a new position in Sonic Automotive in the 4th quarter worth approximately $50,000. Aster Capital Management DIFC Ltd purchased a new position in Sonic Automotive in the 3rd quarter worth approximately $63,000. Finally, National Bank of Canada FI purchased a new position in Sonic Automotive in the 3rd quarter worth approximately $78,000. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive Company Profile

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.