In a recent move, David Smith, the Chairman and CEO of Sonic Automotive Inc . (NYSE:SAH), has sold a significant portion of his stock in the company. According to the latest filings, Smith parted with a total of 67,724 shares of Class A Common Stock on two separate occasions, with the transactions amounting to approximately $3.95 million.
The stock sales occurred on May 7 and May 9, with the prices per share ranging from $58.4346 to $58.49. These transactions reflect a substantial disposal of Smith's holdings in the automotive retail company. The shares were sold at a weighted average price, with the specific number of shares sold at each price available upon request, as noted in the filing's footnotes.
In addition to the sales, Smith also acquired shares through the exercise of options. On May 7 and May 9, he exercised options for 21 and 67,703 shares, respectively, at a set price of $16.76 per share. This resulted in a total acquisition worth over $1.13 million.
The CEO's transactions have resulted in an updated ownership status, with Smith now holding a direct ownership of 583,054 shares following the sales. It is also noted that Smith disclaims beneficial ownership of additional shares held by OBS Family, LLC, except to the extent of his pecuniary interest.
Investors often keep a close eye on insider transactions as they can provide valuable insights into the executives' confidence in the company's future performance. The recent activity by Sonic Automotive's CEO will likely be of interest to current and potential shareholders as they assess the company's stock prospects.
InvestingPro Insights
In light of the recent insider transactions by Sonic Automotive's CEO, David Smith, investors may find the following InvestingPro data and tips particularly informative:
The market capitalization of Sonic Automotive Inc. (NYSE:SAH) stands at $1.98 billion, with a price-to-earnings (P/E) ratio of 11.68. The adjusted P/E ratio has been reported as 8.3 for the last twelve months as of Q1 2024, indicating a potentially more attractive valuation for investors considering the company's earnings. Additionally, the company has a dividend yield of 2.07%, showcasing its commitment to returning value to shareholders, which is further emphasized by a dividend growth of 7.14% over the same period.
From an operational standpoint, Sonic Automotive has generated revenue of $14.27 billion over the last twelve months as of Q1 2024, with a gross profit of $2.23 billion. This translates to a gross profit margin of 15.62%, which, despite being relatively modest, is sustained by a management team that has been actively buying back shares, a sign of confidence in the company's value.
Two InvestingPro Tips that stand out for Sonic Automotive include:
- The company has raised its dividend for 3 consecutive years, indicating a stable and shareholder-friendly financial policy.
- Analysts have revised their earnings upwards for the upcoming period, suggesting that the company's financial prospects may be looking up.
For investors seeking a deeper analysis, Sonic Automotive's profile on InvestingPro offers additional tips, which could provide a more comprehensive understanding of the company's financial health and future potential. Interested parties can find more insights, including the full list of 10 additional tips, by visiting: https://www.investing.com/pro/SAH. Don't forget to use the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As always, while insider transactions like those of CEO David Smith can be a valuable piece of the puzzle, they should be considered alongside a broad spectrum of data and analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.