Sonic Automotive, Inc. (NYSE:SAH) to Issue Quarterly Dividend of $0.41

Key Points

• Sonic Automotive will pay a quarterly dividend of $0.41 per share on January 15 to shareholders of record as of December 15, representing a $1.64 annualized dividend and a 2.6% yield.
• The dividend appears well covered, with a current payout ratio of 23.5% and an expected future payout ratio of 23.2%; the company has raised its dividend for four consecutive years.
• Third-quarter results fell short of expectations: adjusted EPS was $1.30 versus the $1.66 consensus estimate, while revenue reached $3.99 billion, slightly below forecasts but up 0.4% year over year.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) announced a quarterly dividend on Thursday, October 29th. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.41 per share on Friday, January 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Tuesday, December 15th.

Sonic Automotive has increased its dividend payment by an average of 0.3% annually over the last three years and has increased its dividend every year for the last 4 years. Sonic Automotive has a payout ratio of 23.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Sonic Automotive to earn $7.07 per share next year, which means the company should continue to be able to cover its $1.64 annual dividend with an expected future payout ratio of 23.2%.

Sonic Automotive Stock Performance

Shares of NYSE:SAH traded up $0.35 during mid-day trading on Thursday, reaching $63.48. The company had a trading volume of 480,110 shares, compared to its average volume of 287,997. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of 10.12, a PEG ratio of 1.16 and a beta of 0.92. The company's 50-day moving average price is $68.43 and its 200-day moving average price is $73.10. Sonic Automotive has a one year low of $54.11 and a one year high of $113.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.30 EPS for the quarter, missing the consensus estimate of $1.66 by ($0.36). Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The firm had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $4.03 billion. During the same quarter in the previous year, the company posted $1.41 EPS. Sonic Automotive's revenue for the quarter was up .4% on a year-over-year basis. As a group, equities research analysts anticipate that Sonic Automotive will post 6.71 EPS for the current fiscal year.

Insider Buying and Selling at Sonic Automotive

In other news, major shareholder Paul P. Rusnak purchased 12,555 shares of the stock in a transaction dated Wednesday, October 14th. The shares were purchased at an average cost of $59.90 per share, with a total value of $752,044.50. Following the completion of the acquisition, the insider owned 5,176,776 shares in the company, valued at $310,088,882.40. This represents a 0.24% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders bought 76,776 shares of company stock worth $4,584,694 in the last quarter. Corporate insiders own 43.68% of the company's stock.

Hedge Funds Weigh In On Sonic Automotive

Several hedge funds have recently bought and sold shares of the company. Heartland Advisors Inc. purchased a new position in shares of Sonic Automotive in the first quarter worth $8,450,000. Denali Advisors LLC purchased a new stake in Sonic Automotive during the 2nd quarter valued at $4,799,000. Empowered Funds LLC grew its holdings in Sonic Automotive by 64.4% in the 1st quarter. Empowered Funds LLC now owns 131,302 shares of the company's stock worth $9,003,000 after acquiring an additional 51,420 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Sonic Automotive by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company's stock valued at $90,088,000 after acquiring an additional 48,599 shares during the period. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Sonic Automotive in the second quarter valued at about $2,951,000. Hedge funds and other institutional investors own 46.92% of the company's stock.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a U.S.-based automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, maintenance and repair services, replacement parts, and collision-repair services. Sonic Automotive also operates EchoPark Automotive, a used-vehicle business focused on offering pre-owned vehicles and related finance and service products through dedicated retail locations.

Founded in 1997 by automotive entrepreneur O.

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