Sonic Automotive, Inc. (NYSE:SAH) to Issue Dividend Increase - $0.41 Per Share

Key Points

• Sonic Automotive declared a quarterly dividend of $0.41 (annualized $1.52), a 7.9% increase from the prior payout, yielding about 2.1%; shareholders of record on June 15 will be paid on July 15.
• The company reported Q1 EPS of $1.62, missing the $1.70 consensus while revenue rose 1.0% year-over-year, but the dividend appears well-covered with a payout ratio around 21.8% and analysts forecasting ~ $7.21 EPS next year.
• Shares jumped roughly 7.5% to $78.78 on the news; a major insider (Paul P. Rusnak) bought 48,540 shares earlier this year, and Sonic trades at a market cap of about $2.65B with a PE near 23.2.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) declared a quarterly dividend on Thursday, April 30th. Shareholders of record on Monday, June 15th will be paid a dividend of 0.41 per share on Wednesday, July 15th. This represents a c) annualized dividend and a yield of 2.1%. The ex-dividend date is Monday, June 15th. This is a 7.9% increase from Sonic Automotive's previous quarterly dividend of $0.38.

Sonic Automotive has increased its dividend by an average of 0.3%per year over the last three years and has raised its dividend annually for the last 4 consecutive years. Sonic Automotive has a payout ratio of 21.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Sonic Automotive to earn $7.21 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 21.1%.

Sonic Automotive Stock Up 7.5%

Sonic Automotive stock traded up $5.47 during midday trading on Thursday, hitting $78.78. 455,964 shares of the company's stock were exchanged, compared to its average volume of 274,570. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.32 and a current ratio of 1.09. Sonic Automotive has a 12 month low of $54.11 and a 12 month high of $89.62. The firm has a 50-day moving average of $65.25 and a two-hundred day moving average of $64.36. The company has a market cap of $2.65 billion, a PE ratio of 23.24, a P/E/G ratio of 2.10 and a beta of 0.82.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.70 by ($0.08). Sonic Automotive had a return on equity of 21.54% and a net margin of 0.78%.During the same quarter in the prior year, the firm earned $1.48 EPS. The business's quarterly revenue was up 1.0% compared to the same quarter last year. As a group, analysts expect that Sonic Automotive will post 6.54 earnings per share for the current fiscal year.

Insider Activity at Sonic Automotive

In related news, major shareholder Paul P. Rusnak acquired 48,540 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The stock was purchased at an average cost of $59.92 per share, with a total value of $2,908,516.80. Following the transaction, the insider directly owned 5,088,519 shares of the company's stock, valued at $304,904,058.48. This trade represents a 0.96% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders have purchased 100,000 shares of company stock valued at $5,994,472. Company insiders own 43.68% of the company's stock.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. raised its position in shares of Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock valued at $35,000 after purchasing an additional 397 shares during the last quarter. Camelot Portfolios LLC acquired a new position in Sonic Automotive in the 4th quarter worth approximately $41,000. Torren Management LLC acquired a new position in Sonic Automotive in the 4th quarter worth approximately $50,000. Aster Capital Management DIFC Ltd acquired a new position in Sonic Automotive in the 3rd quarter worth approximately $63,000. Finally, National Bank of Canada FI acquired a new position in Sonic Automotive in the 3rd quarter worth approximately $78,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

About Sonic Automotive

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.