Sonic Automotive (NYSE:SAH) Major Shareholder Paul Rusnak Acquires 11,481 Shares of Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak purchased 11,481 shares of the company’s stock in a transaction on Tuesday, February 17th. The stock was acquired at an average price of $59.95 per share, for a total transaction of $688,285.95. Following the completion of the transaction, the insider owned 5,100,000 shares of the company’s stock, valued at $305,745,000. This represents a 0.23% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Large shareholders that own 10% or more of a company’s shares are required to disclose their transactions with the SEC.

Sonic Automotive Stock Performance

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 firm’s 50 day moving average is $62.64 and its 200-day moving average is $68.92. Sonic Automotive, Inc. has a 12-month low of $52.00 and a 12-month 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.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) 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 analyst estimates 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% compared to the same quarter last year. During the same quarter last year, the firm posted $1.51 EPS. Equities research analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

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 given a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.4%. Sonic Automotive’s payout ratio is 41.08%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. raised its stake in shares of Sonic Automotive by 992.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after purchasing an additional 397 shares in the last quarter. Camelot Portfolios LLC acquired a new position in Sonic Automotive in the fourth quarter worth approximately $41,000. Torren Management LLC acquired a new position in Sonic Automotive in the fourth quarter worth approximately $50,000. Aster Capital Management DIFC Ltd acquired a new stake in Sonic Automotive in the third quarter valued at approximately $63,000. Finally, National Bank of Canada FI bought a new stake in Sonic Automotive in the third quarter worth approximately $78,000. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on SAH shares. Needham & Company LLC reduced 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 note on Friday, October 24th. Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target for the company in a research report on Thursday, November 6th. JPMorgan Chase & Co. lowered 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 report on Friday, January 16th. Morgan Stanley set a $68.00 target price on Sonic Automotive in a report on Monday, December 8th. Finally, Wall Street Zen downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $79.63.

More Sonic Automotive News

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

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.