Sonic Automotive, Inc. (NYSE:SAH) Increases Dividend to $0.35 Per Share

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) announced a quarterly dividend on Thursday, October 24th, RTT News reports. Shareholders 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 dividend on an annualized basis and a yield of 2.44%. This is a boost 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% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Stock Performance

Shares of SAH stock traded up $1.90 during mid-day trading on Thursday, hitting $57.37. 389,940 shares of the stock were exchanged, compared to its average volume of 196,946. The stock's fifty day simple moving average is $57.79 and its two-hundred day simple moving average is $56.56. The stock has a market capitalization of $1.96 billion, a price-to-earnings ratio of 10.50 and a beta of 1.60. Sonic Automotive has a 12-month low of $42.57 and a 12-month high of $64.68. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.36 and a current ratio of 1.10.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings results on Monday, August 5th. The company reported $1.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.38 by $0.09. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.56 billion. During the same quarter last year, the company posted $1.83 earnings per share. The business's revenue was down 5.5% on a year-over-year basis. On average, analysts forecast that Sonic Automotive will post 5.63 EPS for the current year.

Analyst Ratings Changes

SAH has been the topic of a number of analyst reports. Needham & Company LLC initiated coverage on Sonic Automotive in a report on Tuesday, August 20th. They issued a "buy" rating and a $73.00 price objective on the stock. Stephens initiated coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an "equal weight" rating and a $64.00 price objective on the stock. Morgan Stanley raised Sonic Automotive from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $40.00 to $58.00 in a report on Wednesday, September 25th. JPMorgan Chase & Co. lifted their price objective on Sonic Automotive from $63.00 to $75.00 and gave the company an "overweight" rating in a report on Tuesday, September 10th. Finally, Bank of America reduced their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a "buy" rating for the company in a research report on Monday, October 14th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat.com, Sonic Automotive currently has an average rating of "Moderate Buy" and an average price target of $66.33.

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.