Heartland Advisors Inc. Invests $8.45 Million in Sonic Automotive, Inc. $SAH

Key Points

• Heartland Advisors disclosed a new stake in Sonic Automotive, buying 123,225 shares valued at about $8.45 million, or roughly 0.37% of the company.
• Several other institutional investors also adjusted holdings, while insiders have been selling shares; President Jeff Dyke sold 35,114 shares in June, and insiders sold 100,000 shares over the last three months.
• Sonic Automotive reported better-than-expected earnings of $1.62 per share last quarter, raised its quarterly dividend to $0.41 per share, and has a mixed analyst view with a consensus rating of Hold.

Heartland Advisors Inc. acquired a new stake in Sonic Automotive, Inc. (NYSE:SAH - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 123,225 shares of the company's stock, valued at approximately $8,450,000. Heartland Advisors Inc. owned about 0.37% of Sonic Automotive at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in SAH. Northwestern Mutual Wealth Management Co. raised its holdings in shares of 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 purchasing an additional 397 shares during the period. Camelot Portfolios LLC bought a new stake in Sonic Automotive in the fourth quarter valued at approximately $41,000. Torren Management LLC acquired a new stake in shares of Sonic Automotive in the fourth quarter valued at approximately $50,000. National Bank of Canada FI bought a new position in shares of Sonic Automotive during the 3rd quarter worth approximately $78,000. Finally, CoreCap Advisors LLC boosted its stake in shares of Sonic Automotive by 28.0% during the 4th quarter. CoreCap Advisors LLC now owns 1,829 shares of the company's stock worth $113,000 after acquiring an additional 400 shares during the period. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Sonic Automotive

In other news, President Jeff Dyke sold 35,114 shares of Sonic Automotive stock in a transaction that occurred on 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 completion of the sale, the president directly owned 543,668 shares in the company, valued at approximately $46,331,386.96. The trade was a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 in the last three months. 43.68% of the stock is currently owned by insiders.

Sonic Automotive Trading Down 2.3%

Shares of Sonic Automotive stock opened at $100.34 on Friday. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03. The firm has a 50-day moving average of $83.66 and a 200-day moving average of $71.32. Sonic Automotive, Inc. has a 52-week low of $54.11 and a 52-week high of $104.30. The stock has a market cap of $3.17 billion, a PE ratio of 31.95, a PEG ratio of 1.54 and a beta of 0.89.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.40 by $0.22. The business had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. Sonic Automotive's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period last year, the firm earned $1.48 earnings per share. As a group, sell-side analysts forecast that Sonic Automotive, Inc. will post 6.94 EPS for the current year.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were issued a dividend of $0.41 per share. This is a boost from Sonic Automotive's previous quarterly dividend of $0.38. This represents a $1.64 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, June 15th. Sonic Automotive's payout ratio is 52.23%.

Analyst Ratings Changes

A number of research firms have commented on SAH. Needham & Company LLC reaffirmed a "buy" rating and set a $90.00 price objective on shares of Sonic Automotive in a research report on Tuesday, March 31st. UBS Group increased their price target on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a "buy" rating in a report on Friday, July 10th. Bank of America raised their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Zacks Research upgraded Sonic Automotive from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, Citigroup upped their target price on Sonic Automotive from $82.00 to $95.00 and gave the company a "buy" rating in a research report on Monday, May 11th. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Sonic Automotive currently has an average rating of "Hold" and a consensus target price of $90.67.

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.

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