Sonic Automotive Inc . (NYSE:SAH) has reached an impressive milestone, with its stock price hitting an all-time high of $70.94. According to InvestingPro data, this peak reflects a significant surge in the company's market value, with a remarkable 40% return over the past year. The company maintains a healthy 2% dividend yield and has increased dividends for four consecutive years. Investors have shown growing confidence in the automotive retailer's business model and future prospects, propelling the stock to new heights. The company's strong performance is a testament to its strategic initiatives and resilience in a competitive industry. With a P/E ratio of 12.2 and an overall "GOOD" financial health rating from InvestingPro, Sonic Automotive continues to demonstrate its market strength. As the company prepares to report earnings in 19 days, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports.
In other recent news, Sonic Automotive has made notable strides in its operations by acquiring Audi New Orleans, marking its first franchise in Louisiana and increasing its national dealership count to 108. This development is part of Sonic Automotive's broader growth strategy. In financial analysis, CFRA raised its 12-month price target for Sonic Automotive from $55.00 to $65.00, maintaining a Hold rating. Similarly, Seaport Global Securities upgraded Sonic Automotive's stock from Neutral to Buy, citing the undervalued nature of the franchise auto retailer sector. Needham also raised its stock price target for Sonic Auto from $73 to $74, highlighting the company's strong performance.
Sonic Automotive reported mixed third-quarter results, with record gross profit and adjusted EBITDA in its EchoPark segment, despite a 38% year-over-year decline in adjusted EPS. The company's franchise business performance varied, with challenges indicated by the initial fiscal year 2025 retail gross profit per unit guidance. However, optimism remains for growth in the EchoPark and Powersports segments. Sonic Auto also announced a 17% increase in its quarterly cash dividend to $0.35 per share. These recent developments underline Sonic Auto's resilience in navigating market fluctuations and its focus on long-term growth.
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