Sonic Automotive (NYSE:SAH) Sets New 12-Month High – Should You Buy?

Sonic Automotive, Inc. (NYSE:SAH) shares reached a new 52-week high during trading on Monday . The stock traded as high as $75.68 and last traded at $71.71, with a volume of 199844 shares changing hands. The stock had previously closed at $75.24.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Stephens upgraded Sonic Automotive from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 24th. Bank of America reduced their price objective on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a report on Monday, October 14th. JPMorgan Chase & Co. dropped their price target on shares of Sonic Automotive from $75.00 to $74.00 and set an “overweight” rating on the stock in a research report on Friday, January 17th. Needham & Company LLC reiterated a “buy” rating and issued a $74.00 price objective on shares of Sonic Automotive in a report on Thursday, January 16th. Finally, Seaport Res Ptn raised Sonic Automotive from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 21st. One investment analyst has rated the stock with a hold rating, three have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, Sonic Automotive has a consensus rating of “Buy” and a consensus target price of $67.20.

Sonic Automotive Price Performance

The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.35 and a current ratio of 1.11. The company’s 50 day moving average price is $67.26 and its 200-day moving average price is $61.89. The company has a market cap of $2.55 billion, a price-to-earnings ratio of 13.26 and a beta of 1.68.

Institutional Investors Weigh In On Sonic Automotive

Institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC raised its holdings in shares of Sonic Automotive by 142.2% during the second quarter. AQR Capital Management LLC now owns 29,755 shares of the company’s stock valued at $1,621,000 after acquiring an additional 17,472 shares during the period. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Sonic Automotive during the 2nd quarter valued at $1,351,000. Inspire Investing LLC lifted its holdings in shares of Sonic Automotive by 8.7% in the third quarter. Inspire Investing LLC now owns 7,036 shares of the company’s stock valued at $411,000 after purchasing an additional 561 shares in the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Sonic Automotive in the third quarter worth $1,244,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in shares of Sonic Automotive during the third quarter valued at $532,000. 46.92% of the stock is owned by institutional investors and hedge funds.

About Sonic Automotive

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.