Victory Capital Management Inc. Boosts Stock Holdings in Sonic Automotive, Inc. (NYSE:SAH)

Key Points

• Victory Capital Management Inc. increased its stake in Sonic Automotive by 50.5%, now owning about 0.37% or 124,342 shares valued at $7.08 million.
• Analysts have raised their price targets on Sonic Automotive shares, with Needham & Company setting a target of $95.00 and maintaining a "buy" rating.
• Sonic Automotive recently declared a quarterly dividend of $0.38 per share, up from $0.35, with a dividend yield of 1.93%.

Victory Capital Management Inc. grew its stake in Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 50.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 124,342 shares of the company's stock after buying an additional 41,722 shares during the quarter. Victory Capital Management Inc. owned approximately 0.37% of Sonic Automotive worth $7,083,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of SAH. Principal Financial Group Inc. boosted its stake in Sonic Automotive by 2.6% during the first quarter. Principal Financial Group Inc. now owns 72,902 shares of the company's stock valued at $4,152,000 after buying an additional 1,851 shares during the last quarter. Teacher Retirement System of Texas lifted its stake in shares of Sonic Automotive by 38.2% in the 1st quarter. Teacher Retirement System of Texas now owns 14,286 shares of the company's stock valued at $814,000 after purchasing an additional 3,952 shares during the last quarter. Handelsbanken Fonder AB lifted its stake in shares of Sonic Automotive by 44.4% in the 1st quarter. Handelsbanken Fonder AB now owns 6,500 shares of the company's stock valued at $370,000 after purchasing an additional 2,000 shares during the last quarter. SG Americas Securities LLC lifted its stake in shares of Sonic Automotive by 266.1% in the 1st quarter. SG Americas Securities LLC now owns 14,096 shares of the company's stock valued at $803,000 after purchasing an additional 10,246 shares during the last quarter. Finally, Harbor Capital Advisors Inc. lifted its stake in shares of Sonic Automotive by 11.8% in the 1st quarter. Harbor Capital Advisors Inc. now owns 62,994 shares of the company's stock valued at $3,588,000 after purchasing an additional 6,633 shares during the last quarter. Hedge funds and other institutional investors own 46.92% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on SAH shares. Citigroup started coverage on Sonic Automotive in a report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 price target on the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $95.00 target price (up from $74.00) on shares of Sonic Automotive in a research report on Friday. Stephens lowered 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 issued a $72.00 price target (up from $65.00) on shares of Sonic Automotive in a report on Thursday, July 17th. Finally, Bank of America lifted their price target on Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a report on Monday, June 16th. One equities research 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's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $77.86.

Insider Activity

In other news, President Jeff Dyke sold 31,152 shares of the business's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $70.05, for a total value of $2,182,197.60. Following the completion of the transaction, the president owned 605,969 shares of the company's stock, valued at $42,448,128.45. The trade was a 4.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Over the last ninety days, insiders sold 50,000 shares of company stock valued at $3,502,062. Insiders own 42.65% of the company's stock.

Sonic Automotive Stock Performance

SAH traded down $1.26 on Tuesday, reaching $75.11. 95,144 shares of the stock were exchanged, compared to its average volume of 226,028. The company's 50-day moving average price is $77.61 and its 200 day moving average price is $69.62. Sonic Automotive, Inc. has a fifty-two week low of $52.00 and a fifty-two week 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 firm has a market capitalization of $2.55 billion, a PE ratio of 16.75 and a beta of 1.04.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The company reported $2.19 EPS for the quarter, topping analysts' consensus estimates of $1.63 by $0.56. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%. The company had revenue of $3.66 billion during the quarter, compared to analysts' expectations of $3.66 billion. During the same quarter in the previous year, the firm posted $1.47 EPS. The firm's revenue was up 5.9% compared to the same quarter last year. As a group, sell-side analysts forecast 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. Stockholders of record on Monday, September 15th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.02%. 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 payout ratio is 31.11%.

Sonic Automotive 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.