Sonic Automotive, Inc. Plans Quarterly Dividend of $0.38 (NYSE:SAH)

Key Points

• Sonic Automotive, Inc. announced a quarterly dividend of $0.38 per share, with the ex-dividend date set for December 15th and payment scheduled for January 15th, yielding 2.3% annually.
• The company's earnings report revealed a missed EPS estimate of $1.82, reporting $1.41 instead, although revenue rose 13.8% year-over-year to $3.97 billion.
• Institutional investors hold 46.92% of Sonic Automotive’s shares, with notable increases in holdings from several hedge funds during the first quarter.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) declared a quarterly dividend on Thursday, October 23rd. Stockholders of record on Monday, December 15th will be given a dividend of 0.38 per share on Thursday, January 15th. This represents a c) annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Monday, December 15th.

Sonic Automotive has a dividend payout ratio of 20.1% indicating that its dividend is sufficiently covered by earnings. 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 Stock Performance

Shares of SAH traded down $12.34 during trading hours on Thursday, hitting $65.50. The company's stock had a trading volume of 463,335 shares, compared to its average volume of 217,912. The company has a market cap of $2.24 billion, a price-to-earnings ratio of 14.56 and a beta of 0.95. 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 business has a 50 day simple moving average of $78.39 and a two-hundred day simple moving average of $74.03. Sonic Automotive has a 52-week low of $52.00 and a 52-week high of $89.62.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its earnings results on Thursday, October 23rd. The company reported $1.41 earnings per share for the quarter, missing the consensus estimate of $1.82 by ($0.41). The business had revenue of $3.97 billion during the quarter, compared to analysts' expectations of $3.59 billion. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%.Sonic Automotive's revenue for the quarter was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.26 EPS. On average, equities analysts expect that Sonic Automotive will post 6.14 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds have recently bought and sold shares of the stock. Teacher Retirement System of Texas lifted its position in Sonic Automotive by 38.2% during the first 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. American Century Companies Inc. lifted its holdings in shares of Sonic Automotive by 23.0% in the 1st quarter. American Century Companies Inc. now owns 25,341 shares of the company's stock worth $1,443,000 after acquiring an additional 4,745 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Sonic Automotive in the 1st quarter worth approximately $1,940,000. Cetera Investment Advisers bought a new stake in shares of Sonic Automotive in the 1st quarter worth approximately $218,000. Finally, Jump Financial LLC bought a new stake in shares of Sonic Automotive in the 1st quarter worth approximately $777,000. 46.92% of the stock is currently owned by institutional investors.

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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