GSA Capital Partners LLP Boosts Stake in Sonic Automotive, Inc. $SAH

GSA Capital Partners LLP increased its holdings in shares of Sonic Automotive, Inc. (NYSE:SAH) by 172.5% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 14,717 shares of the company’s stock after acquiring an additional 9,317 shares during the period. GSA Capital Partners LLP’s holdings in Sonic Automotive were worth $1,120,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of SAH. Northwestern Mutual Wealth Management Co. grew 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 during the period. CoreCap Advisors LLC acquired a new stake in shares of Sonic Automotive in the third quarter valued at about $109,000. Raymond James Financial Inc. acquired a new position in Sonic Automotive during the second quarter worth about $168,000. Entropy Technologies LP purchased a new position in Sonic Automotive in the second quarter valued at about $208,000. Finally, Creative Planning acquired a new stake in shares of Sonic Automotive during the 2nd quarter valued at approximately $213,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Stock Performance

NYSE SAH opened at $64.56 on Friday. The company has a quick ratio of 0.27, a current ratio of 1.02 and a debt-to-equity ratio of 1.68. Sonic Automotive, Inc. has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The business has a fifty day moving average of $62.58 and a 200-day moving average of $68.89. The stock has a market cap of $2.21 billion, a price-to-earnings ratio of 19.04 and a beta of 0.93.

Sonic Automotive (NYSE:SAH) last announced its 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). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.56%. The firm had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.94 billion. During the same period in the previous year, the firm posted $1.51 EPS. The company’s revenue for the quarter was down .6% compared to the same quarter last year. As a group, analysts predict that Sonic Automotive, Inc. will post 6.14 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on SAH. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a report on Monday, December 29th. JPMorgan Chase & Co. lowered their target price on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a report on Friday, January 16th. Needham & Company LLC restated a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research report on Thursday. Morgan Stanley set a $68.00 price objective on shares of Sonic Automotive in a research report on Monday, December 8th. Finally, Stephens dropped their target price on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating for the company in a report on Thursday. Four investment 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. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $77.75.

Sonic Automotive News Roundup

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

• Positive Sentiment: Large insider accumulation — Paul P. Rusnak bought multiple blocks of shares in February (totaling tens of thousands across filings), increasing his stake to ~5.1M shares; repeated buys from a major holder tend to support 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 a ~2.4% yield and a ~41% payout ratio that can attract income-oriented buyers.
• Positive Sentiment: Record gross profit flagged on the call — Management highlighted record gross profit in Q4, supporting a margin-recovery narrative despite top-line pressure. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — Slides and the full earnings call transcript are posted for deeper analysis of F&I, used-vehicle trends and inventory; analysts will parse these for guidance and margin drivers. Earnings Call Transcript
• Neutral Sentiment: Analyst mix — Needham reaffirmed a Buy and a $90 target (large upside vs. current levels), showing bullish conviction from some desks. Benzinga: Needham Reaffirmation
• Negative Sentiment: Q4 slight miss — Sonic reported $1.52 EPS (missed consensus by $0.01) and revenues of $3.87B (below estimates ~ $3.94B), with revenue down ~0.6% YoY and low net margins (~0.9%); this gives short-term bearish talking points on demand. Zacks: Q4 Miss
• Negative Sentiment: Price-target trim by Stephens — Stephens cut its target to $67 and set an Equal Weight rating, which is a near-term headwind for sentiment versus higher targets. The Fly: Stephens Cut

Insider Buying and Selling

In other news, major shareholder Paul P. Rusnak bought 11,481 shares of the stock in a transaction on Tuesday, February 17th. The stock was purchased at an average cost of $59.95 per share, with a total value of $688,285.95. Following the purchase, the insider owned 5,100,000 shares of the company’s stock, valued at approximately $305,745,000. The trade was a 0.23% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Over the last three months, insiders have purchased 100,000 shares of company stock valued at $5,994,472. 42.65% of the stock is currently owned by insiders.

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.