Sonic Automotive (NYSE:SAH) Major Shareholder Paul Rusnak Acquires 11,483 Shares

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak purchased 11,483 shares of the company’s stock in a transaction that occurred on Thursday, February 12th. The shares were purchased at an average cost of $59.97 per share, with a total value of $688,635.51. Following the completion of the purchase, the insider owned 5,039,979 shares of the company’s stock, valued at $302,247,540.63. The trade was a 0.23% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Large 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%

Shares of SAH opened at $63.00 on Thursday. 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 price-to-earnings ratio of 17.03 and a beta of 0.93. Sonic Automotive, Inc. has a 1 year low of $52.00 and a 1 year high of $89.62. The business’s 50 day simple moving average is $62.64 and its 200-day simple moving average is $68.92.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share 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 the consensus estimate of $3.94 billion. Sonic Automotive had a return on equity of 21.65% and a net margin of 0.86%.The company’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.51 EPS. As a group, equities analysts expect 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. Stockholders of record on Friday, March 13th will be given a dividend of $0.38 per share. 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 is currently 41.08%.

Sonic Automotive News Roundup

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

• Positive Sentiment: Large insider accumulation — Major shareholder Paul P. Rusnak bought tens of thousands of shares across several trades in February (bringing his stake to ~5.1M shares). Large, repeated insider purchases at ~\$59.95 signal confidence from a controlling owner and often supports near-term sentiment. SEC Filing: Insider Purchases
• Positive Sentiment: Dividend declared — Sonic announced a quarterly dividend of $0.38/share (ex-dividend March 13; payable April 15), implying ~2.4% yield. The dividend and ~41% payout ratio can attract income-focused investors and provide a floor to seller interest.
• Positive Sentiment: Record gross profit — Management highlighted record gross profit for Q4, suggesting improved operational performance (helpful for margin recovery narratives). Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials posted — Slides, call transcript and presentation are available for deeper inspection of F&I, used-vehicle and inventory trends; analysts will parse these for guidance changes. Earnings Call Transcript
• Neutral Sentiment: Institutional positioning mixed — Recent filings show some hedge funds and banks trimming or adding positions; institutional ownership remains material (~47%), so flow changes can amplify moves but aren’t a clear directional signal.
• Negative Sentiment: Slight Q4 miss on top and bottom line — Q4 EPS of $1.52 missed consensus by $0.01 and revenue of $3.87B trailed estimates (~$3.94B); revenue was down ~0.6% YoY and net margin remains slim (~0.86%), giving bears fodder about demand and margin pressure. Zacks: Q4 Miss

Institutional Trading of Sonic Automotive

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada boosted its stake in shares of Sonic Automotive by 37.1% during the first quarter. Royal Bank of Canada now owns 13,946 shares of the company’s stock valued at $795,000 after purchasing an additional 3,777 shares during the period. AQR Capital Management LLC lifted its holdings in Sonic Automotive by 13.6% during the 1st quarter. AQR Capital Management LLC now owns 23,310 shares of the company’s stock valued at $1,328,000 after buying an additional 2,793 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Sonic Automotive by 5.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock valued at $504,000 after buying an additional 483 shares during the period. Goldman Sachs Group Inc. grew its stake in Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after acquiring an additional 197,336 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Sonic Automotive by 15.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company’s stock worth $2,204,000 after acquiring an additional 5,286 shares during the period. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have issued reports on SAH. Barclays decreased their price objective on Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating on the stock in a research report on Wednesday, January 21st. Needham & Company LLC decreased their price target on Sonic Automotive from $95.00 to $90.00 and set a “buy” rating on the stock in a report on Friday, October 24th. Zacks Research upgraded Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 13th. Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price objective on the stock in a research report on Thursday, November 6th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price 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.