Insider Buying: Sonic Automotive (NYSE:SAH) Major Shareholder Purchases 27,756 Shares of Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak bought 27,756 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were purchased at an average cost of $59.76 per share, for a total transaction of $1,658,698.56. Following the completion of the acquisition, the insider owned 5,149,401 shares of the company’s stock, valued at $307,728,203.76. This trade represents a 0.54% 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

NYSE SAH traded down $1.61 on Tuesday, reaching $61.02. The company’s stock had a trading volume of 308,781 shares, compared to its average volume of 366,006. Sonic Automotive, Inc. has a twelve month low of $54.11 and a twelve month high of $113.67. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.25 and a current ratio of 1.01. The stock has a market cap of $1.93 billion, a PE ratio of 9.73, a PEG ratio of 1.01 and a beta of 0.92. The firm’s 50 day moving average is $76.08 and its two-hundred day moving average is $78.21.

Sonic Automotive (NYSE:SAH) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The company had revenue of $3.93 billion for the quarter, compared to analysts’ expectations of $3.78 billion. During the same quarter in the previous year, the company posted $2.19 EPS. The business’s revenue was up 7.6% compared to the same quarter last year. As a group, sell-side analysts predict that Sonic Automotive, Inc. will post 6.92 EPS for the current year.

Sonic Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.7%. Sonic Automotive’s dividend payout ratio (DPR) is currently 26.16%.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. A&I Financial Services LLC increased its position in Sonic Automotive by 0.9% during the second quarter. A&I Financial Services LLC now owns 11,755 shares of the company’s stock worth $997,000 after buying an additional 109 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of Sonic Automotive by 14.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,594 shares of the company’s stock worth $390,000 after buying an additional 582 shares during the last quarter. Ameritas Advisory Services LLC bought a new stake in shares of Sonic Automotive during the 2nd quarter worth about $88,000. State of Wyoming acquired a new position in shares of Sonic Automotive during the 1st quarter valued at about $79,000. Finally, Quantinno Capital Management LP raised its stake in shares of Sonic Automotive by 13.3% in the 1st quarter. Quantinno Capital Management LP now owns 10,043 shares of the company’s stock valued at $689,000 after acquiring an additional 1,178 shares in the last quarter. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive News Roundup

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

• Positive Sentiment: Major shareholder Paul P. Rusnak purchased 21,645 shares for approximately $1.29 million at an average price of $59.50. The purchase increased his direct stake by 0.42%, a potentially supportive signal of insider confidence. SEC insider transaction filing
• Positive Sentiment: Sonic Automotive reported approximately 8% second-quarter revenue growth, indicating continued sales expansion despite a challenging consumer and auto-market backdrop. Sonic Automotive stock reports 8 percent Q2 revenue growth
• Neutral Sentiment: Sell-side coverage remains mixed, with brokerages collectively rating the stock “Hold.” Analysts’ opinions on Sonic Automotive also remain divided, suggesting limited consensus on the company’s earnings outlook. Sonic Automotive stock rated Hold
• Negative Sentiment: JPMorgan lowered its price target from $72 to $64 and assigned an “Underweight” rating. Although the new target implies modest upside based on the referenced price, the reduction signals weaker expectations for valuation or operating performance. JPMorgan lowers Sonic Automotive price target
• Negative Sentiment: Morgan Stanley also cut its target, from $72 to $57, and maintained an “Underweight” rating. This target is below the referenced share price and reinforces the broader analyst concern weighing on SAH. Morgan Stanley cuts Sonic Automotive price target

Analyst Ratings Changes

Several research firms recently commented on SAH. UBS Group raised their price target on shares of Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Bank of America increased their target price on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Morgan Stanley lowered their price target on shares of Sonic Automotive from $72.00 to $57.00 and set an “underweight” rating on the stock in a report on Monday. JPMorgan Chase & Co. dropped their price target on shares of Sonic Automotive from $72.00 to $64.00 and set an “underweight” rating on the stock in a research note on Tuesday. Finally, Seaport Research Partners lowered Sonic Automotive from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $185.00 to $205.00 in a report on Friday, July 17th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $94.50.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.