Sonic Automotive, Inc. $SAH Holdings Boosted by HITE Hedge Asset Management LLC

Key Points

• HITE Hedge Asset Management LLC boosted its holdings in Sonic Automotive by 111.4%, acquiring an additional 65,198 shares during the first quarter.
• Sonic Automotive reported a quarterly earnings per share of $2.19, exceeding analysts' estimates of $1.63, with a year-over-year revenue increase of 5.9% to $3.66 billion.
• The company announced an increase in its quarterly dividend to $0.38 per share, reflecting a positive change from its previous dividend of $0.35, marking an annual yield of 1.9%.

HITE Hedge Asset Management LLC increased its holdings in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 111.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 123,724 shares of the company's stock after buying an additional 65,198 shares during the quarter. HITE Hedge Asset Management LLC owned 0.36% of Sonic Automotive worth $7,047,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of the business. Wells Fargo & Company MN lifted its stake in Sonic Automotive by 15.7% in the fourth quarter. Wells Fargo & Company MN now owns 21,870 shares of the company's stock valued at $1,385,000 after acquiring an additional 2,968 shares during the last quarter. Legal & General Group Plc increased its holdings in shares of Sonic Automotive by 7.5% during the 4th quarter. Legal & General Group Plc now owns 42,401 shares of the company's stock valued at $2,686,000 after acquiring an additional 2,967 shares during the last quarter. Barclays PLC lifted its holdings in Sonic Automotive by 50.8% in the 4th quarter. Barclays PLC now owns 36,807 shares of the company's stock worth $2,332,000 after purchasing an additional 12,394 shares during the last quarter. Mariner LLC bought a new stake in Sonic Automotive during the fourth quarter worth approximately $225,000. Finally, XTX Topco Ltd acquired a new position in Sonic Automotive during the fourth quarter valued at approximately $242,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, President Jeff Dyke sold 31,152 shares of the business's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the completion of the transaction, the president owned 605,969 shares in the company, valued at approximately $42,448,128.45. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Over the last 90 days, insiders have sold 50,000 shares of company stock worth $3,502,062. 42.65% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on SAH shares. Citigroup started coverage on shares of Sonic Automotive in a research note on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price objective for the company. Wall Street Zen cut Sonic Automotive from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st. Needham & Company LLC reaffirmed a "buy" rating and issued a $95.00 target price on shares of Sonic Automotive in a report on Wednesday, August 6th. Morgan Stanley upped their price target on Sonic Automotive from $60.00 to $72.00 and gave the stock an "equal weight" rating in a report on Thursday. Finally, JPMorgan Chase & Co. restated an "underweight" rating and issued a $72.00 price objective (up previously from $65.00) on shares of Sonic Automotive in a research note on Thursday, July 17th. One analyst has rated the stock with a sell rating, three have issued a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $79.86.

Sonic Automotive Stock Performance

Shares of NYSE:SAH opened at $78.96 on Monday. 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, Inc. has a 1-year low of $52.00 and a 1-year high of $89.62. The stock has a market capitalization of $2.70 billion, a P/E ratio of 17.55 and a beta of 0.99. The business has a 50-day moving average price of $79.11 and a two-hundred day moving average price of $70.10.

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

Sonic Automotive Increases Dividend

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

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.

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