Empowered Funds LLC Boosts Stock Position in Sonic Automotive, Inc. $SAH

Key Points

• Empowered Funds increased its Sonic Automotive stake by 64.4% in the first quarter, bringing its holdings to 131,302 shares valued at approximately $9.0 million. Institutional investors collectively own 46.92% of SAH.
• Sonic Automotive reported quarterly EPS of $1.82, exceeding the $1.75 consensus estimate, while revenue rose 7.6% year over year to $3.93 billion. The company expects full-year EPS of approximately $6.95.
• Analyst sentiment is mixed, with six Buy, three Hold and two Sell ratings, resulting in an average rating of “Hold” and a $97.89 price target. Sonic also declared a quarterly dividend of $0.41 per share, representing a 2.0% yield.

Empowered Funds LLC raised its holdings in Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 64.4% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 131,302 shares of the company's stock after purchasing an additional 51,420 shares during the period. Empowered Funds LLC owned about 0.42% of Sonic Automotive worth $9,003,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Dimensional Fund Advisors LP raised its holdings in 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 in the last quarter. State Street Corp increased its position in shares of Sonic Automotive by 9.8% in the 4th quarter. State Street Corp now owns 701,133 shares of the company's stock worth $43,623,000 after purchasing an additional 62,426 shares during the last quarter. Invesco Ltd. increased its position in shares of Sonic Automotive by 11.9% in the 4th quarter. Invesco Ltd. now owns 510,963 shares of the company's stock worth $31,608,000 after purchasing an additional 54,455 shares during the last quarter. Millennium Management LLC raised its stake in shares of Sonic Automotive by 20.5% in the 3rd quarter. Millennium Management LLC now owns 383,117 shares of the company's stock valued at $29,151,000 after purchasing an additional 65,266 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Sonic Automotive by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 375,034 shares of the company's stock worth $23,204,000 after purchasing an additional 4,443 shares during the last quarter. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have issued reports on SAH shares. Seaport Research Partners cut Sonic Automotive from a "buy" rating to a "neutral" rating and upped their price objective for the company from $185.00 to $205.00 in a research note on Friday, July 17th. Needham & Company LLC boosted their price target on Sonic Automotive from $90.00 to $139.00 and gave the company a "buy" rating in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their price target on Sonic Automotive from $76.00 to $72.00 and set an "underweight" rating on the stock in a research report on Tuesday, August 4th. Morgan Stanley cut Sonic Automotive from an "equal weight" rating to an "underweight" rating and set a $72.00 price objective on the stock. in a research note on Friday, August 7th. Finally, Stephens set a $89.00 price objective on shares of Sonic Automotive in a report on Monday, July 13th. Six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Sonic Automotive currently has an average rating of "Hold" and an average price target of $97.89.

Sonic Automotive Trading Up 1.8%

Shares of NYSE SAH opened at $80.68 on Friday. The company has a market cap of $2.55 billion, a price-to-earnings ratio of 12.87, a price-to-earnings-growth ratio of 1.27 and a beta of 0.86. Sonic Automotive, Inc. has a 12-month low of $54.11 and a 12-month high of $113.67. 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 stock's 50 day simple moving average is $88.65 and its 200 day simple moving average is $75.35.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.82 EPS for the quarter, topping analysts' consensus estimates of $1.75 by $0.07. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The firm had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same period in the prior year, the business earned $2.19 EPS. The firm's revenue was up 7.6% on a year-over-year basis. Equities research analysts expect that Sonic Automotive, Inc. will post 6.95 EPS for the current year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.0%. Sonic Automotive's dividend payout ratio is currently 26.16%.

Insider Buying and Selling at Sonic Automotive

In related news, President Jeff Dyke sold 35,114 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the sale, the president owned 543,668 shares of the company's stock, valued at $46,331,386.96. This trade represents a 6.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 100,000 shares of company stock valued at $8,408,160. 43.68% of the stock is owned by company insiders.

About Sonic Automotive

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.

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