Sonic Automotive (NYSE:SAH) Major Shareholder Acquires $688,635.51 in Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak purchased 11,483 shares of the stock in a transaction on Thursday, February 12th. The shares were purchased at an average cost of $59.97 per share, with a total value of $688,635.51. Following the transaction, the insider owned 5,039,979 shares of the company’s stock, valued at $302,247,540.63. This trade represents a 0.23% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Large shareholders that own more than 10% of a company’s stock are required to disclose their transactions with the SEC.

Sonic Automotive Trading Up 8.1%

Shares of Sonic Automotive stock traded up $4.72 during trading hours on Wednesday, reaching $63.00. The stock had a trading volume of 484,552 shares, compared to its average volume of 192,933. The firm 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 1 year low of $52.00 and a 1 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. The firm has a 50 day simple moving average of $62.71 and a two-hundred day simple moving average of $68.96.

Sonic Automotive (NYSE:SAH) last posted 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 return on equity of 21.65% and a net margin of 0.86%.The firm’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period last year, the company posted $1.51 EPS. As a group, equities research analysts anticipate that Sonic Automotive, Inc. will post 6.14 earnings per share for the current year.

Sonic Automotive Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Citigroup upgraded Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research note on Thursday, November 6th. JPMorgan Chase & Co. reduced their target price on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a research note on Friday, January 16th. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 13th. Finally, Barclays decreased their price objective on shares of Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a report on Wednesday, January 21st. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Sonic Automotive has an average rating of “Hold” and a consensus target price of $79.63.

Key Stories 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 Investors Weigh In On Sonic Automotive

Hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. grew its position in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares in the last quarter. Camelot Portfolios LLC purchased a new position in shares of Sonic Automotive during the 4th quarter valued at $41,000. Torren Management LLC acquired a new position in shares of Sonic Automotive in the fourth quarter worth $50,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of Sonic Automotive during the 3rd quarter worth about $63,000. Finally, National Bank of Canada FI acquired a new stake in Sonic Automotive in the third quarter valued at approximately $78,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

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.