Hsbc Holdings PLC Increases Stake in Sonic Automotive, Inc. $SAH

Key Points

• HSBC Holdings more than doubled its Sonic Automotive stake in the second quarter, increasing ownership by 106.2% to 27,871 shares valued at approximately $2.33 million. Institutional investors collectively own 46.92% of the company.
• Sonic Automotive reported quarterly earnings of $1.82 per share, 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, representing a 2.2% yield.
• Analyst sentiment is mixed: six analysts rate the stock a Buy, three rate it Hold and two rate it Sell. The consensus rating is Hold, with an average price target of $97.33 versus the reported share price of $76.03.

Hsbc Holdings PLC raised its position in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 106.2% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 27,871 shares of the company's stock after purchasing an additional 14,352 shares during the quarter. Hsbc Holdings PLC owned 0.09% of Sonic Automotive worth $2,328,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Northwestern Mutual Wealth Management Co. raised its stake in shares of Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock worth $35,000 after purchasing an additional 397 shares during the last quarter. National Bank of Canada FI bought a new stake in shares of Sonic Automotive in the third quarter worth approximately $78,000. State of Wyoming bought a new stake in shares of Sonic Automotive in the first quarter worth approximately $79,000. Raymond James Financial Inc. purchased a new position in shares of Sonic Automotive during the second quarter valued at approximately $168,000. Finally, Hennion & Walsh Asset Management Inc. purchased a new position in shares of Sonic Automotive during the second quarter valued at approximately $208,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Stock Performance

Shares of NYSE SAH opened at $76.03 on Friday. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.25 and a current ratio of 1.01. The company has a market cap of $2.40 billion, a P/E ratio of 12.13, a P/E/G ratio of 1.23 and a beta of 0.86. The firm's fifty day moving average is $86.68 and its two-hundred day moving average is $77.70. Sonic Automotive, Inc. has a 52-week low of $54.11 and a 52-week high of $113.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.82 earnings per share 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 analyst estimates of $3.78 billion. During the same quarter last year, the business posted $2.19 earnings per share. The business's quarterly revenue was up 7.6% compared to the same quarter last year. As a group, analysts anticipate that Sonic Automotive, Inc. will post 6.92 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 2.2%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive's payout ratio is currently 26.16%.

Analysts Set New Price Targets

A number of brokerages have weighed in on SAH. UBS Group boosted their target price on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Needham & Company LLC lifted their price objective on Sonic Automotive from $90.00 to $139.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Weiss Ratings upgraded Sonic Automotive from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, August 6th. Stephens set a $89.00 target price on Sonic Automotive in a research report on Monday, July 13th. Finally, Bank of America boosted their price target on Sonic Automotive from $91.00 to $108.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $97.33.

Sonic Automotive 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.