Westwood Holdings Group Inc. Increases Stock Position in Sonic Automotive, Inc. (NYSE:SAH)

Key Points

• Westwood Holdings Group Inc. increased its ownership stake in Sonic Automotive, Inc. by 26.2%, owning 641,237 shares valued at approximately $36.5 million as of the latest SEC filing.
• Sonic Automotive has announced a quarterly dividend increase from $0.35 to $0.38 per share, representing a yield of 2.0%.
• Wall Street analysts have varied outlooks on Sonic Automotive, with a consensus rating of "Moderate Buy" and a price target averaging $77.86.

Westwood Holdings Group Inc. grew its holdings in Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 26.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 641,237 shares of the company's stock after acquiring an additional 133,044 shares during the period. Westwood Holdings Group Inc. owned 1.89% of Sonic Automotive worth $36,525,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of SAH. New Age Alpha Advisors LLC grew its position in shares of Sonic Automotive by 53.5% during the first quarter. New Age Alpha Advisors LLC now owns 31,757 shares of the company's stock worth $1,809,000 after purchasing an additional 11,066 shares in the last quarter. XTX Topco Ltd boosted its stake in Sonic Automotive by 150.5% in the 1st quarter. XTX Topco Ltd now owns 9,585 shares of the company's stock worth $546,000 after purchasing an additional 5,759 shares during the period. Cetera Investment Advisers purchased a new stake in Sonic Automotive during the 1st quarter valued at approximately $218,000. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Sonic Automotive during the first quarter valued at approximately $1,940,000. Finally, Denali Advisors LLC lifted its holdings in shares of Sonic Automotive by 2.0% in the first quarter. Denali Advisors LLC now owns 88,885 shares of the company's stock worth $5,063,000 after buying an additional 1,785 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company's stock.

Sonic Automotive Trading Up 1.8%

SAH traded up $1.34 on Friday, hitting $74.40. The company had a trading volume of 166,816 shares, compared to its average volume of 230,133. The business's fifty day simple moving average is $78.30 and its 200 day simple moving average is $69.87. The company has a quick ratio of 0.24, a current ratio of 1.03 and a debt-to-equity ratio of 1.78. Sonic Automotive, Inc. has a 12-month low of $52.00 and a 12-month high of $89.62. The company has a market cap of $2.54 billion, a PE ratio of 16.53 and a beta of 0.99.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its 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 firm 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 business earned $1.47 EPS. The company's quarterly revenue was up 5.9% on a year-over-year basis. Equities research analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be paid a $0.38 dividend. This is an increase from Sonic Automotive's previous quarterly dividend of $0.35. This represents a $1.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Monday, September 15th. Sonic Automotive's payout ratio is currently 33.78%.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on SAH shares. Bank of America raised their target price on shares of Sonic Automotive from $80.00 to $94.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. restated an "underweight" rating and set a $72.00 price objective (up previously from $65.00) on shares of Sonic Automotive in a research report on Thursday, July 17th. Stephens downgraded Sonic Automotive from an "overweight" rating to an "equal weight" rating and boosted their target price for the stock from $72.00 to $82.00 in a research report on Thursday, July 17th. Citigroup assumed coverage on Sonic Automotive in a research note on Wednesday, April 23rd. They set a "neutral" rating and a $64.00 price target for the company. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $95.00 price objective on shares of Sonic Automotive in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $77.86.

Insider Buying and Selling at Sonic Automotive

In other 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 Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold a total of 50,000 shares of company stock valued at $3,502,062 over the last quarter. Corporate 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.