Sonic Automotive (NYSE:SAH) Major Shareholder Paul Rusnak Buys 11,481 Shares

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak bought 11,481 shares of Sonic Automotive stock in a transaction that occurred on Tuesday, February 17th. The shares were acquired at an average cost of $59.95 per share, for a total transaction of $688,285.95. Following the completion of the transaction, the insider directly owned 5,100,000 shares in the company, valued at $305,745,000. This represents a 0.23% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 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 Up 8.1%

Sonic Automotive stock traded up $4.72 during midday trading on Wednesday, reaching $63.00. The company’s stock had a trading volume of 484,552 shares, compared to its average volume of 192,933. Sonic Automotive, Inc. has a 52-week low of $52.00 and a 52-week high of $89.62. The stock has a market capitalization of $2.15 billion, a P/E ratio of 17.03 and a beta of 0.93. 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’s 50-day simple moving average is $62.71 and its 200-day simple moving average is $68.96.

Sonic Automotive (NYSE:SAH) last released its earnings results on Wednesday, February 18th. The company reported $1.52 EPS for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). The company had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.94 billion. Sonic Automotive had a return on equity of 21.65% and a net margin of 0.86%.The firm’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter last year, the business earned $1.51 earnings per share. On average, sell-side analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, March 13th. Sonic Automotive’s dividend payout ratio (DPR) is presently 41.08%.

Key Sonic Automotive News

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

A number of hedge funds and other institutional investors have recently made changes to their positions in SAH. Y Intercept Hong Kong Ltd acquired a new position in Sonic Automotive during the third quarter worth $647,000. Jackson Creek Investment Advisors LLC increased its stake in shares of Sonic Automotive by 311.2% during the third quarter. Jackson Creek Investment Advisors LLC now owns 23,571 shares of the company’s stock worth $1,794,000 after purchasing an additional 17,839 shares in the last quarter. CWA Asset Management Group LLC acquired a new position in shares of Sonic Automotive during the 3rd quarter worth about $2,006,000. Bryce Point Capital LLC acquired a new position in shares of Sonic Automotive during the 2nd quarter worth about $793,000. Finally, Brandywine Global Investment Management LLC lifted its stake in Sonic Automotive by 30.3% in the 2nd quarter. Brandywine Global Investment Management LLC now owns 94,468 shares of the company’s stock valued at $7,551,000 after buying an additional 21,960 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently weighed in on SAH shares. JPMorgan Chase & Co. cut their price objective on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research note on Friday, January 16th. Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a report on Monday, December 29th. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price on the stock in a report on Thursday, November 6th. Wall Street Zen cut Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Finally, Needham & Company LLC lowered their price objective on Sonic Automotive from $95.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, October 24th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $79.63.

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.