Sonic Automotive, Inc. (NYSE:SAH) Announces Dividend Increase – $0.35 Per Share

Sonic Automotive, Inc. (NYSE:SAH) declared a quarterly dividend on Thursday, October 24th, RTT News reports. Stockholders of record on Friday, December 13th will be given a dividend of 0.35 per share on Wednesday, January 15th. This represents a $1.40 annualized dividend and a dividend yield of 2.44%. The ex-dividend date is Friday, December 13th. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.30.

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 19.6% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Sonic Automotive to earn $6.12 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 19.6%.

Sonic Automotive Price Performance

NYSE SAH opened at $57.37 on Friday. The company has a quick ratio of 0.36, a current ratio of 1.10 and a debt-to-equity ratio of 2.04. The company has a market cap of $1.96 billion, a PE ratio of 10.60 and a beta of 1.60. Sonic Automotive has a 52 week low of $42.57 and a 52 week high of $64.68. The firm’s 50-day simple moving average is $57.74 and its two-hundred day simple moving average is $56.57.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Monday, August 5th. The company reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.38 by $0.09. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. The company had revenue of $3.45 billion for the quarter, compared to analysts’ expectations of $3.56 billion. During the same period in the prior year, the company posted $1.83 EPS. Sonic Automotive’s revenue was down 5.5% compared to the same quarter last year. Research analysts predict that Sonic Automotive will post 5.63 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Needham & Company LLC assumed coverage on Sonic Automotive in a research note on Tuesday, August 20th. They set a “buy” rating and a $73.00 price objective on the stock. JPMorgan Chase & Co. upped their price target on Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday, September 10th. Stephens began coverage on shares of Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price target on the stock. Bank of America reduced their price objective on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, October 14th. Finally, Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $40.00 to $58.00 in a research note on Wednesday, September 25th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, Sonic Automotive currently has an average rating of “Moderate Buy” and an average price target of $66.33.

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.