Paul Rusnak Buys 18,738 Shares of Sonic Automotive (NYSE:SAH) Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak bought 18,738 shares of the company’s stock in a transaction on Thursday, February 5th. The stock was bought at an average cost of $59.98 per share, with a total value of $1,123,905.24. Following the completion of the purchase, the insider owned 5,018,738 shares of the company’s stock, valued at approximately $301,023,905.24. The trade was a 0.37% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Major shareholders that own more than 10% of a company’s stock are required to disclose their transactions with the SEC.

Sonic Automotive Price Performance

Shares of SAH traded up $4.72 during mid-day trading on Wednesday, hitting $63.00. 484,552 shares of the company traded hands, compared to its average volume of 192,933. The business has a 50-day moving average of $62.71 and a 200 day moving average of $68.96. 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 one year low of $52.00 and a one year high of $89.62. The company has a current ratio of 1.02, a quick ratio of 0.27 and a debt-to-equity ratio of 1.68.

Sonic Automotive (NYSE:SAH) last released its earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) 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 analyst estimates of $3.94 billion. Sonic Automotive had a net margin of 0.86% and a return on equity of 21.65%. The business’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.51 earnings per share. As a group, equities analysts expect that Sonic Automotive, Inc. will post 6.14 earnings per share 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. Shareholders of record on Friday, March 13th will be issued a dividend of $0.38 per share. The ex-dividend date is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. Sonic Automotive’s dividend payout ratio (DPR) is 41.08%.

Key Headlines Impacting Sonic Automotive

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

Several institutional investors have recently bought and sold shares of the business. Y Intercept Hong Kong Ltd acquired a new stake in shares of Sonic Automotive during the third quarter valued at about $647,000. Jackson Creek Investment Advisors LLC boosted its position in Sonic Automotive by 311.2% during the third quarter. Jackson Creek Investment Advisors LLC now owns 23,571 shares of the company’s stock valued at $1,794,000 after acquiring an additional 17,839 shares during the last quarter. CWA Asset Management Group LLC acquired a new stake in Sonic Automotive during the third quarter worth approximately $2,006,000. Bryce Point Capital LLC bought a new stake in shares of Sonic Automotive in the 2nd quarter valued at $793,000. Finally, Brandywine Global Investment Management LLC raised its holdings in shares of Sonic Automotive by 30.3% during the second quarter. Brandywine Global Investment Management LLC now owns 94,468 shares of the company’s stock valued at $7,551,000 after purchasing an additional 21,960 shares during the period. Institutional investors and hedge funds own 46.92% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a research report on Thursday, November 6th. Wall Street Zen downgraded shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. JPMorgan Chase & Co. lowered their price target on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research report on Friday, January 16th. Finally, Needham & Company LLC cut their target price 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. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Sonic Automotive presently has an average 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.