Sonic Automotive (NYSE:SAH) Sets New 52-Week High After Strong Earnings

Sonic Automotive, Inc. (NYSE:SAH) shares reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $76.78 and last traded at $71.54, with a volume of 7924 shares trading hands. The stock had previously closed at $74.76.

The company reported $1.51 earnings per share for the quarter, beating the consensus estimate of $1.46 by $0.05. Sonic Automotive had a net margin of 1.41% and a return on equity of 21.27%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. JPMorgan Chase & Co. decreased their target price on shares of Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating on the stock in a report on Friday, January 17th. Stephens raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 24th. Needham & Company LLC reissued a “buy” rating and issued a $74.00 price target on shares of Sonic Automotive in a research note on Thursday, January 16th. Finally, Seaport Res Ptn raised shares of Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research note on Thursday, November 21st. One investment analyst has rated the stock with a hold rating, three have given a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $67.20.

Institutional Investors Weigh In On Sonic Automotive

Several large investors have recently added to or reduced their stakes in SAH. Phocas Financial Corp. purchased a new stake in Sonic Automotive during the 3rd quarter worth approximately $3,645,000. Denali Advisors LLC increased its stake in Sonic Automotive by 111.2% during the 4th quarter. Denali Advisors LLC now owns 87,100 shares of the company’s stock worth $5,518,000 after buying an additional 45,857 shares during the period. Harbor Capital Advisors Inc. increased its stake in Sonic Automotive by 124.7% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 55,383 shares of the company’s stock worth $3,239,000 after buying an additional 30,731 shares during the period. JPMorgan Chase & Co. increased its stake in Sonic Automotive by 52.1% during the 4th quarter. JPMorgan Chase & Co. now owns 80,957 shares of the company’s stock worth $5,129,000 after buying an additional 27,726 shares during the period. Finally, Assenagon Asset Management S.A. acquired a new position in Sonic Automotive during the 3rd quarter worth approximately $1,244,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Stock Down 3.2 %

The company has a current ratio of 1.11, a quick ratio of 0.35 and a debt-to-equity ratio of 1.87. The company has a market cap of $2.48 billion, a price-to-earnings ratio of 12.74 and a beta of 1.68. The firm’s fifty day simple moving average is $67.72 and its 200 day simple moving average is $62.50.

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.