Key Points
- Major shareholder Paul Rusnak bought 1,119 Sonic Automotive shares for about $67,000, increasing his stake to more than 5.15 million shares valued at approximately $308.5 million.
- Sonic Automotive reported quarterly EPS of $1.82, beating estimates, while revenue rose 7.6% year over year to $3.93 billion. The company also declared a quarterly dividend of $0.41 per share, yielding about 2.7% annually.
- Shares opened at $60.52, near their 12-month low, amid mixed analyst sentiment: the consensus rating is Hold, with several firms cutting price targets despite some maintaining Buy ratings.
Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) major shareholder Paul Rusnak bought 1,119 shares of the business's stock in a transaction dated Tuesday, October 6th. The shares were acquired at an average cost of $59.90 per share, with a total value of $67,028.10. Following the completion of the purchase, the insider owned 5,150,520 shares in the company, valued at approximately $308,516,148. This represents a 0.02% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Major shareholders that own at least 10% of a company's shares are required to disclose their sales and purchases with the SEC.
Sonic Automotive Stock Down 0.8%
SAH opened at $60.52 on Thursday. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. The business has a 50 day simple moving average of $75.04 and a 200-day simple moving average of $78.21. The stock has a market capitalization of $1.91 billion, a P/E ratio of 9.65, a P/E/G ratio of 0.98 and a beta of 0.92. Sonic Automotive, Inc. has a 12 month low of $54.11 and a 12 month high of $113.67.
Sonic Automotive (NYSE:SAH - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, beating analysts' consensus estimates of $1.75 by $0.07. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The firm had revenue of $3.93 billion for the quarter, compared to the consensus estimate of $3.78 billion. During the same period in the previous year, the business earned $2.19 earnings per share. The company's revenue for the quarter was up 7.6% compared to the same quarter last year. On average, equities analysts anticipate that Sonic Automotive, Inc. will post 6.9 earnings per share for the current fiscal year.
Sonic Automotive Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive's payout ratio is presently 26.16%.
Hedge Funds Weigh In On Sonic Automotive
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SAH. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Sonic Automotive in the second quarter valued at about $373,000. Ameritas Advisory Services LLC purchased a new position in shares of Sonic Automotive during the 2nd quarter worth approximately $88,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Sonic Automotive by 14.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company's stock worth $390,000 after purchasing an additional 582 shares in the last quarter. Denali Advisors LLC acquired a new position in shares of Sonic Automotive during the 2nd quarter worth approximately $4,799,000. Finally, Hsbc Holdings PLC lifted its stake in Sonic Automotive by 106.2% in the 2nd quarter. Hsbc Holdings PLC now owns 27,871 shares of the company's stock valued at $2,328,000 after buying an additional 14,352 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company's stock.
Key Sonic Automotive News
Here are the key news stories impacting Sonic Automotive this week:
- Positive Sentiment: Major shareholder Paul P. Rusnak purchased a combined 50,520 shares for approximately $3.01 million in transactions on October 1, 5, and 6. The purchases modestly increased his already sizable stake and may signal confidence that the recent weakness has created value. SEC insider transaction filing
- Positive Sentiment: UBS lowered its price target to $74 from $107 but maintained a “Buy” rating, indicating that the firm still sees upside after the stock’s decline. UBS price target update
- Neutral Sentiment: Sonic Automotive will release third-quarter 2026 results before the market opens on October 29, followed by a management conference call. Investors are likely to focus on dealership demand, used-vehicle trends, margins, and guidance. Sonic Automotive earnings announcement
- Neutral Sentiment: Barclays retained its “Hold” rating, while broader sell-side coverage remains mixed. The lack of consensus may limit buying interest until the upcoming earnings report provides greater clarity. Barclays rating
- Negative Sentiment: JPMorgan cut its price target from $72 to $64 and assigned an “Underweight” rating, signaling concern about Sonic Automotive’s valuation or operating outlook. JPMorgan price target reduction
- Negative Sentiment: The sharp target reductions from UBS and JPMorgan reinforce concerns about the auto-retailing environment and contribute to the downward pressure on SAH, despite the insider purchases.
Wall Street Analyst Weigh In
A number of research analysts have issued reports on SAH shares. Citigroup increased their target price on shares of Sonic Automotive from $95.00 to $115.00 and gave the company a "buy" rating in a report on Monday, August 3rd. JPMorgan Chase & Co. decreased their price target on Sonic Automotive from $72.00 to $64.00 and set an "underweight" rating on the stock in a research note on Tuesday. Morgan Stanley dropped their price objective on Sonic Automotive from $72.00 to $57.00 and set an "underweight" rating for the company in a research note on Monday. UBS Group reduced their price objective on Sonic Automotive from $107.00 to $74.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Seaport Research Partners downgraded Sonic Automotive from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $185.00 to $205.00 in a research report on Friday, July 17th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $90.12.
Check Out Our Latest Stock Analysis on Sonic Automotive
About Sonic Automotive
(
Get Free Report)
Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.
Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.
Founded in 1997 by automotive entrepreneur O.
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