Sonic Automotive, Inc. $SAH Shares Acquired by AlphaQuest LLC

Key Points

• AlphaQuest LLC significantly increased its stake in Sonic Automotive by 956.2%, acquiring an additional 18,226 shares in Q1, bringing its total holdings to 20,132 shares valued at approximately $1.15 million.
• Sonic Automotive reported a quarterly earnings per share (EPS) of $2.19, exceeding the consensus estimate of $1.63, with a year-over-year revenue increase of 5.9% to $3.66 billion.
• The company announced a dividend increase to $0.38 per share, up from $0.35, reflecting a solid annualized dividend yield of 1.9% and a payout ratio of 33.78%.

AlphaQuest LLC grew its position in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 956.2% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,132 shares of the company's stock after purchasing an additional 18,226 shares during the period. AlphaQuest LLC owned about 0.06% of Sonic Automotive worth $1,147,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board bought a new stake in shares of Sonic Automotive in the 4th quarter valued at about $51,000. Cetera Investment Advisers bought a new stake in shares of Sonic Automotive in the 1st quarter valued at about $218,000. Mariner LLC bought a new stake in shares of Sonic Automotive in the 4th quarter valued at about $225,000. XTX Topco Ltd bought a new stake in shares of Sonic Automotive in the 4th quarter valued at about $242,000. Finally, Susquehanna Fundamental Investments LLC bought a new stake in shares of Sonic Automotive in the 4th quarter valued at about $261,000. Institutional investors own 46.92% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Zacks Research downgraded Sonic Automotive from a "strong-buy" rating to a "hold" rating in a report on Friday, August 22nd. Bank of America increased their target price on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Morgan Stanley raised their price target on Sonic Automotive from $60.00 to $72.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. Wall Street Zen cut Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, Benchmark raised their price target on Sonic Automotive from $76.00 to $80.00 and gave the company a "buy" rating in a report on Friday, July 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Sonic Automotive presently has an average rating of "Hold" and an average price target of $79.86.

Insider Activity

In related news, President Jeff Dyke sold 576 shares of the business's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $70.02, for a total value of $40,331.52. Following the completion of the sale, the president owned 605,393 shares in the company, valued at approximately $42,389,617.86. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 42.65% of the company's stock.

Sonic Automotive Trading Down 1.0%

Shares of NYSE:SAH traded down $0.86 during trading hours on Friday, hitting $83.48. 27,466 shares of the company's stock traded hands, compared to its average volume of 226,532. Sonic Automotive, Inc. has a 1 year low of $52.00 and a 1 year high of $89.62. The business has a fifty day moving average price of $79.98 and a 200-day moving average price of $70.61. The firm has a market capitalization of $2.85 billion, a P/E ratio of 18.55 and a beta of 0.99. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its earnings results on Thursday, July 24th. The company reported $2.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $0.56. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.66 billion. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The company's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.47 earnings per share. Equities analysts expect that Sonic Automotive, Inc. will post 6.14 earnings per share for the current year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 15th will be issued a $0.38 dividend. The ex-dividend date is Monday, September 15th. This is a positive change from Sonic Automotive's previous quarterly dividend of $0.35. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.8%. Sonic Automotive's dividend payout ratio (DPR) is presently 31.11%.

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.