Nuveen LLC Acquires Shares of 128,450 Sonic Automotive, Inc. $SAH

Key Points

• Nuveen LLC has made a new investment in Sonic Automotive, acquiring approximately $7.32 million in stock, representing 0.38% of the company.
• Sonic Automotive recently announced a dividend increase to $0.38 per share, up from $0.35, reflecting positive growth in financial performance.
• The company's stock has been well-received, with recent analyst upgrades setting price targets as high as $95.00 and affirming a generally positive outlook on its performance.

Nuveen LLC purchased a new stake in Sonic Automotive, Inc. (NYSE:SAH - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 128,450 shares of the company's stock, valued at approximately $7,317,000. Nuveen LLC owned 0.38% of Sonic Automotive at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the stock. Deutsche Bank AG boosted its holdings in Sonic Automotive by 9.0% in the 1st quarter. Deutsche Bank AG now owns 26,304 shares of the company's stock valued at $1,498,000 after purchasing an additional 2,165 shares during the period. Westwood Holdings Group Inc. boosted its holdings in Sonic Automotive by 26.2% in the 1st quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock valued at $36,525,000 after purchasing an additional 133,044 shares during the period. New Age Alpha Advisors LLC boosted its holdings in Sonic Automotive by 53.5% in the 1st quarter. New Age Alpha Advisors LLC now owns 31,757 shares of the company's stock valued at $1,809,000 after purchasing an additional 11,066 shares during the period. XTX Topco Ltd boosted its holdings in Sonic Automotive by 150.5% in the 1st quarter. XTX Topco Ltd now owns 9,585 shares of the company's stock valued at $546,000 after purchasing an additional 5,759 shares during the period. Finally, Cetera Investment Advisers bought a new stake in Sonic Automotive in the 1st quarter valued at $218,000. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Price Performance

SAH stock traded down $2.54 during trading on Friday, hitting $81.79. 137,930 shares of the stock traded hands, compared to its average volume of 209,095. Sonic Automotive, Inc. has a one year low of $52.00 and a one year high of $89.62. The stock has a market cap of $2.79 billion, a price-to-earnings ratio of 18.18 and a beta of 0.99. The company has a 50 day simple moving average of $80.05 and a 200 day simple moving average of $70.65. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 1.78.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly 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. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The firm had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.66 billion. During the same period last year, the firm posted $1.47 EPS. The firm's quarterly revenue was up 5.9% on a year-over-year basis. Equities analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be given a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, September 15th. This is a boost from Sonic Automotive's previous quarterly dividend of $0.35. Sonic Automotive's dividend payout ratio is 31.11%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on SAH. Bank of America increased their price target on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a report on Monday, June 16th. Needham & Company LLC reaffirmed a "buy" rating and set a $95.00 price objective on shares of Sonic Automotive in a report on Wednesday, August 6th. Zacks Research downgraded shares of Sonic Automotive from a "strong-buy" rating to a "hold" rating in a report on Friday, August 22nd. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $72.00 price objective (up from $65.00) on shares of Sonic Automotive in a report on Thursday, July 17th. Finally, Stephens downgraded shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and raised their price objective for the stock from $72.00 to $82.00 in a report on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $79.86.

Insiders Place Their Bets

In other Sonic Automotive news, President Jeff Dyke sold 576 shares of the firm's stock in a transaction dated Monday, June 2nd. The shares were 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. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 42.65% of the company's stock.

About Sonic Automotive

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.