Sonic Automotive, Inc. (NYSE:SAH) Increases Dividend to $0.38 Per Share

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) announced a quarterly dividend on Thursday, July 24th, RTT News reports. Shareholders of record on Monday, September 15th will be given a dividend of 0.38 per share on Wednesday, October 15th. This represents a $1.52 dividend on an annualized basis and a yield of 1.93%. The ex-dividend date is Monday, September 15th. This is a 8.6% increase from Sonic Automotive's previous quarterly dividend of $0.35.

Sonic Automotive has a payout ratio of 20.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Sonic Automotive to earn $7.51 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 18.6%.

Sonic Automotive Price Performance

Shares of NYSE:SAH traded up $3.47 during midday trading on Friday, hitting $78.90. The company had a trading volume of 351,086 shares, compared to its average volume of 233,692. Sonic Automotive has a twelve month low of $52.00 and a twelve month high of $89.62. The stock has a market cap of $2.68 billion, a price-to-earnings ratio of 17.53 and a beta of 1.04. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.09 and a quick ratio of 0.38. The business's 50-day simple moving average is $77.46 and its 200-day simple moving average is $69.49.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted 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 21.27% 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 last year, the firm earned $1.47 earnings per share. The firm's quarterly revenue was up 5.9% compared to the same quarter last year. On average, research analysts predict that Sonic Automotive will post 6.14 earnings per share for the current year.

Wall Street Analyst Weigh In

SAH has been the subject of several research analyst reports. Stephens cut shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and upped their target price for the company from $72.00 to $82.00 in a report on Thursday, July 17th. Needham & Company LLC lifted their price target on Sonic Automotive from $74.00 to $95.00 and gave the stock a "buy" rating in a research report on Friday. Citigroup began coverage on shares of Sonic Automotive in a report on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 target price for the company. Wall Street Zen lowered Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Finally, JPMorgan Chase & Co. restated an "underweight" rating and issued a $72.00 price target (up from $65.00) on shares of Sonic Automotive in a research note on Thursday, July 17th. 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 stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $77.86.

Insiders Place Their Bets

In other news, President Jeff Dyke sold 31,152 shares of the firm's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the sale, the president owned 605,969 shares in the company, valued at $42,448,128.45. This trade represents a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last three months, insiders sold 50,000 shares of company stock valued at $3,502,062. Insiders own 42.65% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Sonic Automotive by 5.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company's stock valued at $504,000 after buying an additional 483 shares during the period. Royal Bank of Canada raised its stake in shares of Sonic Automotive by 37.1% in the 1st quarter. Royal Bank of Canada now owns 13,946 shares of the company's stock valued at $795,000 after acquiring an additional 3,777 shares during the period. AQR Capital Management LLC raised its stake in shares of Sonic Automotive by 13.6% in the 1st quarter. AQR Capital Management LLC now owns 23,310 shares of the company's stock valued at $1,328,000 after acquiring an additional 2,793 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Sonic Automotive by 15.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company's stock valued at $2,204,000 after acquiring an additional 5,286 shares in the last quarter. Finally, Jane Street Group LLC boosted its position in Sonic Automotive by 263.4% during the 1st quarter. Jane Street Group LLC now owns 62,908 shares of the company's stock worth $3,583,000 after purchasing an additional 45,596 shares during the period. Institutional investors and hedge funds own 46.92% 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.