Sonic Automotive (NYSE:SAH) Major Shareholder Paul Rusnak Purchases 48,540 Shares

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak bought 48,540 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were purchased at an average cost of $59.92 per share, for a total transaction of $2,908,516.80. Following the completion of the acquisition, the insider owned 5,088,519 shares of the company’s stock, valued at $304,904,058.48. This trade represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Major shareholders that own at least 10% of a company’s stock are required to disclose their transactions with the SEC.

Sonic Automotive Price Performance

Shares of NYSE:SAH traded up $4.72 during trading hours on Wednesday, hitting $63.00. 484,552 shares of the company’s stock traded hands, compared to its average volume of 192,933. The company’s fifty day simple moving average is $62.71 and its two-hundred day simple moving average is $68.96. The company has a market cap of $2.15 billion, a price-to-earnings ratio of 17.03 and a beta of 0.93. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.27 and a current ratio of 1.02. Sonic Automotive, Inc. has a 52 week low of $52.00 and a 52 week high of $89.62.

Sonic Automotive (NYSE:SAH) last issued its earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). The business had revenue of $3.87 billion for 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 quarterly revenue was down .6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.51 earnings per share. As a group, equities analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The business also recently announced 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. This represents a $1.52 annualized dividend and a dividend 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%.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Sonic Automotive by 6.2% in the third quarter. Vanguard Group Inc. now owns 1,646,450 shares of the company’s stock worth $125,278,000 after acquiring an additional 96,836 shares in the last quarter. State Street Corp boosted its holdings in Sonic Automotive by 9.8% in the fourth quarter. State Street Corp now owns 701,133 shares of the company’s stock worth $43,623,000 after purchasing an additional 62,426 shares in the last quarter. Invesco Ltd. increased its position in Sonic Automotive by 1.4% during the third quarter. Invesco Ltd. now owns 456,508 shares of the company’s stock worth $34,736,000 after buying an additional 6,147 shares during the last quarter. Millennium Management LLC raised its holdings in Sonic Automotive by 20.5% during the third quarter. Millennium Management LLC now owns 383,117 shares of the company’s stock valued at $29,151,000 after buying an additional 65,266 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Sonic Automotive by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 375,034 shares of the company’s stock valued at $23,204,000 after buying an additional 4,443 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

More 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

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Zacks Research raised shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 13th. JPMorgan Chase & Co. reduced their price target on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research report on Friday, January 16th. Morgan Stanley set a $68.00 price objective on shares of Sonic Automotive in a research report on Monday, December 8th. Barclays decreased their target price on Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 21st. Finally, Citigroup upgraded Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a report on Thursday, November 6th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Sonic Automotive presently has an average rating of “Hold” and an average target price of $79.63.

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.