Sonic Automotive (NYSE:SAH) Shares Gap Up After Better-Than-Expected Earnings

Sonic Automotive, Inc. (NYSE:SAH) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $51.12, but opened at $55.43. Sonic Automotive shares last traded at $56.27, with a volume of 99,659 shares traded.

The company reported $1.36 EPS for the quarter, topping the consensus estimate of $1.23 by $0.13. Sonic Automotive had a return on equity of 27.69% and a net margin of 1.21%. The company had revenue of $3.40 billion during the quarter, compared to the consensus estimate of $3.45 billion. During the same period in the previous year, the company posted $1.33 EPS. The firm’s revenue for the quarter was down 2.6% compared to the same quarter last year.

Sonic Automotive Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, July 15th. Investors of record on Friday, June 14th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.20 annualized dividend and a yield of 1.92%. Sonic Automotive’s dividend payout ratio (DPR) is presently 24.59%.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Sonic Automotive

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Westwood Holdings Group Inc. acquired a new position in Sonic Automotive in the 4th quarter worth about $31,473,000. Charles Schwab Investment Management Inc. grew its position in shares of Sonic Automotive by 4.4% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 381,211 shares of the company’s stock valued at $18,207,000 after buying an additional 16,117 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its position in shares of Sonic Automotive by 1,841.9% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 301,526 shares of the company’s stock valued at $14,401,000 after buying an additional 285,999 shares during the last quarter. Schonfeld Strategic Advisors LLC grew its position in shares of Sonic Automotive by 705.8% in the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 67,086 shares of the company’s stock valued at $3,204,000 after buying an additional 58,761 shares during the last quarter. Finally, FMR LLC grew its position in shares of Sonic Automotive by 2.0% in the 3rd quarter. FMR LLC now owns 57,581 shares of the company’s stock valued at $2,750,000 after buying an additional 1,118 shares during the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Price Performance

The business has a 50-day simple moving average of $52.53 and a 200 day simple moving average of $52.00. The stock has a market cap of $2.12 billion, a P/E ratio of 12.78 and a beta of 1.82. The company has a current ratio of 1.10, a quick ratio of 0.41 and a debt-to-equity ratio of 2.10.

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.