Insider Buying: Sonic Automotive (NYSE:SAH) Major Shareholder Acquires 7,827 Shares of Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak bought 7,827 shares of the company’s stock in a transaction dated Tuesday, February 10th. The stock was purchased at an average price of $59.96 per share, for a total transaction of $469,306.92. Following the purchase, the insider owned 5,026,565 shares of the company’s stock, valued at approximately $301,392,837.40. This represents a 0.16% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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 Up 8.1%

SAH stock traded up $4.72 during midday trading on Wednesday, hitting $63.00. The company’s stock had a trading volume of 484,552 shares, compared to its average volume of 192,933. The firm’s 50-day moving average is $62.71 and its 200-day moving average is $68.96. The company has a current ratio of 1.02, a quick ratio of 0.27 and a debt-to-equity ratio of 1.68. Sonic Automotive, Inc. has a 12 month low of $52.00 and a 12 month high of $89.62. The company has a market cap of $2.15 billion, a PE ratio of 17.03 and a beta of 0.93.

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

Sonic Automotive Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC cut their price objective on shares of Sonic Automotive from $95.00 to $90.00 and set a “buy” rating for the company in a research report on Friday, October 24th. JPMorgan Chase & Co. decreased their price objective on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research note on Friday, January 16th. Barclays cut their price objective on Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 21st. Wall Street Zen lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Finally, Morgan Stanley set a $68.00 price target on shares of Sonic Automotive in a report on Monday, December 8th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Sonic Automotive presently has a consensus rating of “Hold” and an average price target of $79.63.

Institutional Trading of Sonic Automotive

Hedge funds have recently modified their holdings of the company. Nisa Investment Advisors LLC lifted its position in Sonic Automotive by 3.8% during the second quarter. Nisa Investment Advisors LLC now owns 4,509 shares of the company’s stock valued at $362,000 after purchasing an additional 165 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp lifted its holdings in shares of Sonic Automotive by 1.2% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after acquiring an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its position in Sonic Automotive by 1.9% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock worth $924,000 after acquiring an additional 273 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Sonic Automotive by 8.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after purchasing an additional 284 shares during the period. Finally, CWM LLC raised its position in Sonic Automotive by 11.3% during the fourth quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after purchasing an additional 291 shares during the period. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive News Roundup

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

About Sonic Automotive

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.