Sonic Automotive (NYSE:SAH) Stock Price Up 4.4% Following Earnings Beat

Sonic Automotive, Inc. (NYSE:SAH) shares traded up 4.4% during mid-day trading on Monday following a stronger than expected earnings report. The company traded as high as $58.36 and last traded at $58.36. 23,985 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 204,450 shares. The stock had previously closed at $55.89.

The company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.38 by $0.09. Sonic Automotive had a return on equity of 27.46% and a net margin of 1.21%. The firm had revenue of $3.45 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same period in the prior year, the company posted $1.83 earnings per share. The firm’s quarterly revenue was down 5.5% compared to the same quarter last year.

Sonic Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Friday, September 13th will be given a $0.30 dividend. The ex-dividend date is Friday, September 13th. This represents a $1.20 annualized dividend and a yield of 2.04%. Sonic Automotive’s dividend payout ratio (DPR) is 24.59%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on SAH shares. Bank of America dropped their target price on Sonic Automotive from $68.00 to $67.00 and set a “buy” rating on the stock in a report on Monday, July 22nd. JPMorgan Chase & Co. upgraded shares of Sonic Automotive from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $58.00 to $63.00 in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, Sonic Automotive has a consensus rating of “Hold” and a consensus price target of $58.00.

Insider Buying and Selling

In other news, CEO David Bruton Smith sold 41,770 shares of the stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $59.27, for a total value of $2,475,707.90. Following the completion of the transaction, the chief executive officer now owns 583,054 shares in the company, valued at approximately $34,557,610.58. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Sonic Automotive news, President Jeff Dyke sold 15,000 shares of the business’s stock in a transaction on Tuesday, May 28th. The stock was sold at an average price of $56.76, for a total transaction of $851,400.00. Following the sale, the president now directly owns 161,622 shares in the company, valued at $9,173,664.72. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO David Bruton Smith sold 41,770 shares of the stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $59.27, for a total transaction of $2,475,707.90. Following the completion of the sale, the chief executive officer now directly owns 583,054 shares in the company, valued at $34,557,610.58. The disclosure for this sale can be found here. Insiders have sold 163,514 shares of company stock valued at $9,625,454 over the last quarter. Company insiders own 40.95% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Westwood Holdings Group Inc. purchased a new position in Sonic Automotive in the 4th quarter valued at about $31,473,000. Victory Capital Management Inc. boosted its position in Sonic Automotive by 524.4% during the second quarter. Victory Capital Management Inc. now owns 100,602 shares of the company’s stock worth $5,480,000 after acquiring an additional 84,489 shares during the last quarter. Quadrature Capital Ltd purchased a new stake in Sonic Automotive in the 4th quarter worth approximately $1,724,000. BNP Paribas Financial Markets raised its holdings in Sonic Automotive by 125.4% in the 4th quarter. BNP Paribas Financial Markets now owns 43,175 shares of the company’s stock valued at $2,427,000 after acquiring an additional 24,021 shares during the last quarter. Finally, Harbor Capital Advisors Inc. lifted its stake in shares of Sonic Automotive by 270.0% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 24,652 shares of the company’s stock worth $1,343,000 after purchasing an additional 17,989 shares during the period. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Sonic Automotive Stock Up 2.1 %

The firm has a market cap of $1.99 billion, a price-to-earnings ratio of 12.03 and a beta of 1.61. The company has a quick ratio of 0.35, a current ratio of 1.09 and a debt-to-equity ratio of 2.11. The firm has a fifty day moving average price of $56.10 and a 200-day moving average price of $54.72.

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.