Engineers Gate Manager LP Reduces Holdings in Sonic Automotive, Inc. $SAH

Key Points

• Engineers Gate Manager LP cut its Sonic Automotive stake by 70.4% in the second quarter, selling 72,405 shares and retaining 30,439 shares valued at approximately $2.6 million.
• Sonic Automotive reported quarterly EPS of $1.82, exceeding estimates of $1.75, while revenue rose 7.6% year over year to $3.93 billion. The company also declared a quarterly dividend of $0.41 per share, yielding about 2.1% annually.
• Analyst sentiment is mixed: six analysts rate the stock a Buy, three Hold and two Sell, producing an overall “Hold” rating and an average price target of $97.33 versus the reported share price of $76.49.

Engineers Gate Manager LP cut its position in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 70.4% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 30,439 shares of the company's stock after selling 72,405 shares during the quarter. Engineers Gate Manager LP owned approximately 0.10% of Sonic Automotive worth $2,581,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Sonic Automotive during the second quarter worth approximately $373,000. California State Teachers Retirement System lifted its position in shares of Sonic Automotive by 9,481.6% during the second quarter. California State Teachers Retirement System now owns 1,318,145 shares of the company's stock worth $111,766,000 after purchasing an additional 1,304,388 shares in the last quarter. Ameritas Advisory Services LLC purchased a new position in shares of Sonic Automotive in the second quarter valued at $88,000. Northwestern Mutual Wealth Management Co. grew its holdings in Sonic Automotive by 14.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company's stock valued at $390,000 after purchasing an additional 582 shares in the last quarter. Finally, Denali Advisors LLC acquired a new stake in Sonic Automotive during the 2nd quarter valued at $4,799,000. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Sonic Automotive Stock Performance

Shares of SAH stock opened at $76.49 on Tuesday. Sonic Automotive, Inc. has a 1-year low of $54.11 and a 1-year 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 company has a market capitalization of $2.42 billion, a price-to-earnings ratio of 12.20, a P/E/G ratio of 1.22 and a beta of 0.86. The stock's fifty day simple moving average is $86.49 and its 200-day simple moving average is $77.90.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating 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 analysts' expectations of $3.78 billion. During the same quarter last year, the firm earned $2.19 earnings per share. The business's revenue for the quarter was up 7.6% on a year-over-year basis. On average, sell-side analysts predict that Sonic Automotive, Inc. will post 6.92 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive's payout ratio is presently 26.16%.

Analyst Ratings Changes

SAH has been the subject of a number of analyst reports. Stephens set a $89.00 price objective on shares of Sonic Automotive in a research report on Monday, July 13th. Needham & Company LLC lifted their target price on Sonic Automotive from $90.00 to $139.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Morgan Stanley downgraded Sonic Automotive from an "equal weight" rating to an "underweight" rating and set a $72.00 price objective for the company. in a research note on Friday, August 7th. Bank of America boosted their price objective on Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Finally, Citigroup raised their target price on Sonic Automotive from $95.00 to $115.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Six 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 stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $97.33.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an 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 replacement parts, vehicle maintenance and repair services, financing, insurance products and other related offerings.

Sonic also operates EchoPark Automotive, a retail platform focused primarily on high-quality pre-owned vehicles. Through its dealership and EchoPark operations, the company provides vehicle purchasing, trade-in, financing and service options to consumers.

Founded in 1997, Sonic Automotive serves customers through locations across the United States.

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