Sonic Automotive (NYSE:SAH) President Sells 50,000 Shares

Sonic Automotive, Inc. (NYSE:SAH) President Jeff Dyke sold 50,000 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president owned 111,622 shares in the company, valued at $9,261,277.34. This represents a 30.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Sonic Automotive Price Performance

Shares of SAH traded up $0.61 during trading hours on Monday, reaching $82.77. 289,507 shares of the company’s stock traded hands, compared to its average volume of 282,507. The stock has a market cap of $2.62 billion, a PE ratio of 26.36, a price-to-earnings-growth ratio of 1.89 and a beta of 0.88. The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93. The firm’s 50 day simple moving average is $73.83 and its 200-day simple moving average is $66.57. Sonic Automotive, Inc. has a 12 month low of $54.11 and a 12 month high of $89.62.

Sonic Automotive (NYSE:SAH) last released its quarterly 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. The business had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.73 billion. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company’s revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter last year, the business posted $1.48 earnings per share. Equities analysts expect that Sonic Automotive, Inc. will post 6.92 EPS for the current year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Monday, June 15th. Sonic Automotive’s payout ratio is currently 48.41%.

Wall Street Analyst Weigh In

SAH has been the subject of a number of research reports. UBS Group initiated coverage on shares of Sonic Automotive in a research note on Wednesday, May 27th. They issued a “buy” rating and a $90.00 price target for the company. Citigroup lifted their price objective on Sonic Automotive from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Barclays increased their target price on Sonic Automotive from $67.00 to $77.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 5th. Needham & Company LLC restated a “buy” rating and issued a $90.00 target price on shares of Sonic Automotive in a research note on Tuesday, March 31st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a research report on Friday, March 27th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Sonic Automotive has an average rating of “Hold” and a consensus price target of $83.00.

Institutional Trading of Sonic Automotive

A number of hedge funds have recently made changes to their positions in SAH. Northwestern Mutual Wealth Management Co. lifted its position in Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after acquiring an additional 397 shares in the last quarter. Camelot Portfolios LLC bought a new position in Sonic Automotive in the 4th quarter valued at approximately $41,000. Torren Management LLC bought a new position in Sonic Automotive in the 4th quarter valued at approximately $50,000. Aster Capital Management DIFC Ltd bought a new position in Sonic Automotive in the 3rd quarter valued at approximately $63,000. Finally, National Bank of Canada FI bought a new position in Sonic Automotive in the 3rd quarter valued at approximately $78,000. 46.92% of the stock is owned by institutional investors.

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.