Sonic Automotive (NYSE:SAH) Major Shareholder Purchases $1,123,905.24 in Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak purchased 18,738 shares of the stock in a transaction dated Thursday, February 5th. The shares were purchased at an average price of $59.98 per share, for a total transaction of $1,123,905.24. Following the completion of the transaction, the insider owned 5,018,738 shares in the company, valued at $301,023,905.24. This trade represents a 0.37% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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

Shares of Sonic Automotive stock traded up $4.72 during trading on Wednesday, hitting $63.00. The stock had a trading volume of 484,552 shares, compared to its average volume of 192,933. The business has a fifty day moving average of $62.71 and a two-hundred day moving average of $68.96. The firm has a market cap of $2.15 billion, a P/E ratio of 17.03 and a beta of 0.93. Sonic Automotive, Inc. has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). The business had revenue of $3.87 billion during 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%. Sonic Automotive’s revenue was down .6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.51 earnings per share. On average, sell-side 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. Stockholders of record on Friday, March 13th will be given a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.4%. Sonic Automotive’s payout ratio is 41.08%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on SAH shares. Citigroup upgraded Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a report on Thursday, November 6th. Wall Street Zen lowered Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Morgan Stanley set a $68.00 target price on shares of Sonic Automotive in a research note on Monday, December 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Finally, Needham & Company LLC lowered their target price on shares of Sonic Automotive from $95.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, October 24th. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $79.63.

Sonic Automotive News Roundup

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 Trading of Sonic Automotive

Large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. grew its stake in Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after buying an additional 397 shares during the last quarter. Camelot Portfolios LLC acquired a new position in Sonic Automotive in the fourth quarter worth $41,000. Torren Management LLC acquired a new position in Sonic Automotive in the fourth quarter worth $50,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Sonic Automotive in the third quarter valued at $63,000. Finally, National Bank of Canada FI bought a new position in shares of Sonic Automotive in the third quarter valued at about $78,000. 46.92% of the stock is currently owned by institutional investors.

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.