Sonic Automotive, Inc. to Issue Quarterly Dividend of $0.30 (NYSE:SAH)

Sonic Automotive, Inc. (NYSE:SAH) announced a quarterly dividend on Monday, August 5th, Zacks reports. Shareholders of record on Friday, September 13th will be paid a dividend of 0.30 per share on Tuesday, October 15th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.24%. The ex-dividend date is Friday, September 13th.

Sonic Automotive has increased its dividend by an average of 42.6% annually over the last three years. Sonic Automotive has a payout ratio of 19.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Sonic Automotive to earn $6.26 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 19.2%.

Sonic Automotive Trading Down 1.0 %

NYSE SAH opened at $53.54 on Thursday. The company has a market capitalization of $1.83 billion, a PE ratio of 10.97 and a beta of 1.61. Sonic Automotive has a 1-year low of $41.19 and a 1-year high of $64.68. The company has a current ratio of 1.10, a quick ratio of 0.36 and a debt-to-equity ratio of 2.04. The firm’s fifty day simple moving average is $58.06 and its 200-day simple moving average is $55.92.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Monday, August 5th. The company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.38 by $0.09. The business had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.56 billion. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm’s revenue was down 5.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.83 EPS. As a group, sell-side analysts anticipate that Sonic Automotive will post 5.87 earnings per share for the current fiscal year.

Insider Transactions at Sonic Automotive

In related news, CFO Heath Byrd sold 19,827 shares of the company’s stock in a transaction on Thursday, July 18th. The stock was sold at an average price of $60.00, for a total value of $1,189,620.00. Following the completion of the transaction, the chief financial officer now directly owns 173,618 shares in the company, valued at $10,417,080. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 40.95% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

SAH has been the subject of several research analyst reports. Stephens initiated coverage on Sonic Automotive in a research report on Thursday. They set an “equal weight” rating and a $64.00 price objective for the company. Bank of America dropped their price target on Sonic Automotive from $68.00 to $67.00 and set a “buy” rating on the stock in a research report on Monday, July 22nd. JPMorgan Chase & Co. increased their price objective on Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday. Finally, Needham & Company LLC started coverage on shares of Sonic Automotive in a research report on Tuesday, August 20th. They set a “buy” rating and a $73.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat, Sonic Automotive presently has a consensus rating of “Hold” and an average target price of $63.50.

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.