Oliver Luxxe Assets LLC Invests $1.31 Million in Sonic Automotive, Inc. $SAH

Key Points

• Oliver Luxxe Assets LLC acquired 22,936 shares of Sonic Automotive, valued at approximately $1.3 million, representing 0.07% of the company's total shares.
• Sonic Automotive recently announced a dividend increase from $0.35 to $0.38 per share, indicating a strong annualized dividend yield of 1.9%.
• Despite various analyst rating changes, the overall consensus for Sonic Automotive is a "Moderate Buy" rating, with an average target price of $79.86.

Oliver Luxxe Assets LLC bought a new stake in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 22,936 shares of the company's stock, valued at approximately $1,306,000. Oliver Luxxe Assets LLC owned about 0.07% of Sonic Automotive at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Westwood Holdings Group Inc. lifted its holdings in shares of Sonic Automotive by 26.2% during the 1st quarter. Westwood Holdings Group Inc. now owns 641,237 shares of the company's stock valued at $36,525,000 after buying an additional 133,044 shares during the period. Millennium Management LLC lifted its holdings in shares of Sonic Automotive by 3.9% during the 4th quarter. Millennium Management LLC now owns 476,107 shares of the company's stock valued at $30,161,000 after buying an additional 17,965 shares during the period. Northern Trust Corp lifted its holdings in shares of Sonic Automotive by 0.3% during the 1st quarter. Northern Trust Corp now owns 291,941 shares of the company's stock valued at $16,629,000 after buying an additional 808 shares during the period. Nuveen Asset Management LLC lifted its holdings in shares of Sonic Automotive by 1.1% during the 4th quarter. Nuveen Asset Management LLC now owns 128,835 shares of the company's stock valued at $8,162,000 after buying an additional 1,386 shares during the period. Finally, Nuveen LLC bought a new position in shares of Sonic Automotive during the 1st quarter valued at $7,317,000. 46.92% of the stock is currently owned by hedge funds and other institutional investors.

Sonic Automotive Price Performance

Shares of SAH stock traded down $1.05 during trading hours on Friday, hitting $83.29. The stock had a trading volume of 30,171 shares, compared to its average volume of 226,546. Sonic Automotive, Inc. has a one year low of $52.00 and a one year high of $89.62. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24. The stock's 50-day moving average price is $79.98 and its two-hundred day moving average price is $70.61. The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 18.51 and a beta of 0.99.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its earnings results on Thursday, July 24th. The company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.The firm had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $3.66 billion. During the same period in the previous year, the firm posted $1.47 earnings per share. The business's revenue was up 5.9% compared to the same quarter last year. Equities analysts forecast that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Monday, September 15th will be issued a $0.38 dividend. The ex-dividend date is Monday, September 15th. This is a positive change from Sonic Automotive's previous quarterly dividend of $0.35. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.8%. Sonic Automotive's dividend payout ratio (DPR) is presently 31.11%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SAH. Stephens downgraded Sonic Automotive from an "overweight" rating to an "equal weight" rating and lifted their target price for the company from $72.00 to $82.00 in a research report on Thursday, July 17th. JPMorgan Chase & Co. reiterated an "underweight" rating and set a $72.00 target price (up from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Zacks Research downgraded Sonic Automotive from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 22nd. Wall Street Zen downgraded Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. Finally, Bank of America lifted their target price on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research report on Monday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $79.86.

Insider Activity

In related news, President Jeff Dyke sold 576 shares of the business's stock in a transaction that occurred on Monday, June 2nd. The stock was 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. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 42.65% of the company's stock.

Sonic Automotive Company Profile

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.