Sonic Automotive (NYSE:SAH) Major Shareholder Paul Rusnak Purchases 18,738 Shares

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

Sonic Automotive Stock Up 8.1%

SAH stock opened at $63.00 on Thursday. The stock has a market cap of $2.15 billion, a P/E ratio of 17.03 and a beta of 0.93. The company has a current ratio of 1.02, a quick ratio of 0.27 and a debt-to-equity ratio of 1.68. The stock’s fifty day simple moving average is $62.64 and its two-hundred day simple moving average is $68.92. Sonic Automotive, Inc. has a 1-year low of $52.00 and a 1-year high of $89.62.

Sonic Automotive (NYSE:SAH) last announced its 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 for the quarter, compared to analysts’ expectations of $3.94 billion. Sonic Automotive had a net margin of 0.86% and a return on equity of 21.65%. The company’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the prior year, the business earned $1.51 earnings per share. Analysts expect that Sonic Automotive, Inc. will post 6.14 EPS for the current 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 paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, March 13th. Sonic Automotive’s payout ratio is presently 41.08%.

Key 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

Hedge Funds Weigh In On Sonic Automotive

Large investors have recently made changes to their positions in the stock. Nisa Investment Advisors LLC raised its stake in shares of Sonic Automotive by 3.8% during the 2nd quarter. Nisa Investment Advisors LLC now owns 4,509 shares of the company’s stock valued at $362,000 after purchasing an additional 165 shares during the period. Mitsubishi UFJ Trust & Banking Corp grew its holdings in Sonic Automotive by 1.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after buying an additional 190 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its position in shares of Sonic Automotive by 1.9% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock valued at $924,000 after buying an additional 273 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in shares of Sonic Automotive by 8.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after buying an additional 284 shares during the period. Finally, CWM LLC lifted its holdings in shares of Sonic Automotive by 11.3% in the fourth quarter. CWM LLC now owns 2,858 shares of the company’s stock worth $177,000 after buying an additional 291 shares in the last quarter. 46.92% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Zacks Research raised shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research report on Monday, December 29th. Needham & Company LLC dropped their price target on Sonic Automotive from $95.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, October 24th. Morgan Stanley set a $68.00 price target on Sonic Automotive in a research note on Monday, December 8th. Finally, Citigroup upgraded Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price objective on the stock in a research note on Thursday, November 6th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus 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.