Insider Buying: Sonic Automotive (NYSE:SAH) Major Shareholder Purchases 48,540 Shares of Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak acquired 48,540 shares of Sonic Automotive stock in a transaction dated Friday, February 13th. The stock was purchased at an average price of $59.92 per share, with a total value of $2,908,516.80. Following the completion of the purchase, the insider directly owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. The trade was a 0.96% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Major shareholders that own more than 10% of a company’s stock are required to disclose their sales and purchases with the SEC.

Sonic Automotive Stock Performance

NYSE:SAH traded up $4.72 during midday trading on Wednesday, reaching $63.00. The stock had a trading volume of 484,552 shares, compared to its average volume of 192,933. Sonic Automotive, Inc. has a 1-year low of $52.00 and a 1-year high of $89.62. The firm’s fifty day simple moving average is $62.71 and its 200-day simple moving average is $68.96. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27. The stock has a market capitalization of $2.15 billion, a P/E ratio of 17.03 and a beta of 0.93.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.01). The business had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.94 billion. Sonic Automotive had a net margin of 0.86% and a return on equity of 21.65%. The company’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.51 earnings per share. On average, equities research analysts forecast that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be issued a dividend of $0.38 per share. The ex-dividend date is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.4%. Sonic Automotive’s payout ratio is 41.08%.

Analysts Set New Price Targets

Several equities analysts recently commented on SAH shares. Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research note on Thursday, November 6th. JPMorgan Chase & Co. reduced their target price on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research report on Friday, January 16th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 13th. Wall Street Zen lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Finally, Morgan Stanley set a $68.00 target price on shares of Sonic Automotive in a research note on Monday, December 8th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Sonic Automotive has a consensus rating of “Hold” and a consensus target price of $79.63.

Sonic Automotive News Summary

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: The board declared a quarterly cash dividend of $0.38 per share, payable April 15 to holders of record March 13; that equates to an annualized $1.52 and a yield of ~2.4%, which supports income-focused investors and signals confidence in cash generation.
• Neutral Sentiment: Company-provided materials: Sonic posted Q4 results and made its earnings presentation and slide deck available (useful for detailed operational metrics, segment trends and management commentary). Sonic Q4 Press Release & Slide Deck
• Neutral Sentiment: Analyst-focused previews and metric analysis are available that dig beyond headline EPS/revenue to look at same-store metrics, used-car mix and gross margins — items that could influence guidance and sentiment going forward. Sonic Automotive (SAH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Earnings and revenue slightly missed consensus: Sonic reported $1.52 EPS vs. $1.53 expected and revenue of $3.87B vs. $3.94B expected; revenue was down ~0.6% year‑over‑year. The miss and softer top-line weigh on near-term sentiment and raise scrutiny of margins and used-vehicle performance. Sonic Automotive (SAH) Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Profitability metrics are mixed: Q4 net margin was low (~0.86%) despite a high ROE (~21.7%), implying leverage and capital allocation will be watched closely by investors and analysts as the company refreshes guidance. Sonic Q4 Conference Call / Slide Deck

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. boosted its stake in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares in the last quarter. Camelot Portfolios LLC acquired a new stake in Sonic Automotive in the 4th quarter valued at about $41,000. Torren Management LLC bought a new position in shares of Sonic Automotive in the fourth quarter worth about $50,000. Aster Capital Management DIFC Ltd bought a new position in shares of Sonic Automotive in the third quarter worth about $63,000. Finally, National Bank of Canada FI bought a new stake in shares of Sonic Automotive during the third quarter valued at approximately $78,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.