Sonic Automotive (NYSE:SAH) Reaches New 1-Year High – Here’s Why

Shares of Sonic Automotive, Inc. (NYSE:SAH) hit a new 52-week high during trading on Tuesday . The stock traded as high as $104.91 and last traded at $105.0460, with a volume of 2681 shares traded. The stock had previously closed at $99.82.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on SAH shares. Citigroup increased their target price on shares of Sonic Automotive from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Bank of America upped their price objective on Sonic Automotive from $91.00 to $108.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. UBS Group raised their target price on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Morgan Stanley set a $72.00 price target on Sonic Automotive in a research report on Thursday, May 7th. Finally, Stephens set a $89.00 price objective on Sonic Automotive in a report on Monday, July 13th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Sonic Automotive presently has an average rating of “Hold” and a consensus target price of $90.67.

Sonic Automotive Stock Performance

The business has a 50 day moving average of $87.78 and a 200-day moving average of $73.57. The company has a market capitalization of $3.55 billion, a P/E ratio of 35.76, a price-to-earnings-growth ratio of 1.60 and a beta of 0.89. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH) last posted its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share for the quarter, beating 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 business had revenue of $3.69 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the previous year, the firm earned $1.48 EPS. The company’s quarterly revenue was up 1.0% compared to the same quarter last year. On average, sell-side analysts predict that Sonic Automotive, Inc. will post 6.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the sale, the president directly owned 543,668 shares in the company, valued at $46,331,386.96. This represents a 6.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 100,000 shares of company stock worth $8,408,160. Corporate insiders own 43.68% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

Institutional investors and hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its stake in Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after acquiring an additional 197,336 shares during the last quarter. Heartland Advisors Inc. bought a new position in shares of Sonic Automotive in the first quarter worth approximately $8,450,000. Bridgeway Capital Management LLC bought a new position in shares of Sonic Automotive in the fourth quarter worth approximately $7,384,000. Qube Research & Technologies Ltd bought a new position in shares of Sonic Automotive in the 3rd quarter worth $7,450,000. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Sonic Automotive by 70.8% during the 4th quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after acquiring an additional 75,125 shares during the last quarter. Hedge funds and other 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.