Sonic Automotive, Inc. (NYSE:SAH) Stock Now Rated “Hold” by Wall Street Analysts

Sonic Automotive, Inc. (NYSE:SAH) has received a consensus recommendation of “Hold” from the ten analysts that are currently covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $84.75.

Several research firms have recently issued reports on SAH. Morgan Stanley dropped their price target on shares of Sonic Automotive from $72.00 to $57.00 and set an “underweight” rating for the company in a research note on Monday, October 5th. UBS Group reduced their price objective on shares of Sonic Automotive from $107.00 to $74.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. Citigroup increased their price objective on Sonic Automotive from $95.00 to $115.00 and gave the company a “buy” rating in a report on Monday, August 3rd. Barclays lowered their target price on Sonic Automotive from $87.00 to $75.00 and set an “equal weight” rating for the company in a research report on Tuesday, October 6th. Finally, Seaport Research Partners downgraded Sonic Automotive from a “buy” rating to a “neutral” rating and lifted their target price for the stock from $185.00 to $205.00 in a report on Friday, July 17th.

Trending Headlines about Sonic Automotive

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

• Positive Sentiment: Needham & Company maintained a Buy rating and set a $96 price target, implying substantial upside from recent levels. However, the target was reduced from $139, signaling more cautious expectations. Needham analyst rating
• Positive Sentiment: Sonic Automotive declared a quarterly dividend of $0.41 per share, or $1.64 annualized, representing an approximately 2.6% yield. The dividend is payable January 15, 2027, to shareholders of record as of December 15, 2026. Dividend announcement
• Neutral Sentiment: The company expects EchoPark’s fourth-quarter adjusted EBITDA to be $2 million to $4 million while launching a $5 million to $7 million brand investment. The spending could support longer-term growth but may weigh on near-term profitability. EchoPark outlook
• Negative Sentiment: Third-quarter adjusted earnings were $1.30 per share, $0.36 below the $1.66 consensus estimate and down from $1.41 a year earlier. Revenue of $3.99 billion also fell short of the $4.03 billion estimate and grew only 0.4% year over year, weighing on investor sentiment. Third-quarter earnings miss

Sonic Automotive Stock Down 1.1%

SAH stock opened at $62.92 on Friday. The stock has a market capitalization of $1.99 billion, a P/E ratio of 10.12, a price-to-earnings-growth ratio of 1.21 and a beta of 0.92. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88. Sonic Automotive has a 12 month low of $54.11 and a 12 month high of $113.67. The firm has a 50-day moving average price of $67.83 and a 200-day moving average price of $73.09.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.66 by ($0.36). The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $4.03 billion. Sonic Automotive had a net margin of 1.33% and a return on equity of 20.23%. The company’s revenue was up .4% compared to the same quarter last year. During the same period last year, the business earned $1.41 EPS. As a group, equities research analysts anticipate that Sonic Automotive will post 6.71 EPS for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Tuesday, December 15th will be issued a $0.41 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $1.64 annualized dividend and a yield of 2.6%. Sonic Automotive’s dividend payout ratio is presently 26.16%.

Insider Buying and Selling

In related news, major shareholder Paul P. Rusnak acquired 12,555 shares of the company’s stock in a transaction on Wednesday, October 14th. The shares were acquired at an average cost of $59.90 per share, for a total transaction of $752,044.50. Following the purchase, the insider owned 5,176,776 shares in the company, valued at approximately $310,088,882.40. The trade was a 0.24% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last three months, insiders purchased 76,776 shares of company stock worth $4,584,694. Insiders own 43.68% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Ameritas Advisory Services LLC bought a new stake in Sonic Automotive during the second quarter valued at $88,000. State of Wyoming purchased a new stake in shares of Sonic Automotive in the 1st quarter valued at about $79,000. CoreCap Advisors LLC raised its holdings in shares of Sonic Automotive by 15.5% in the 3rd quarter. CoreCap Advisors LLC now owns 1,550 shares of the company’s stock valued at $94,000 after acquiring an additional 208 shares in the last quarter. Hennion & Walsh Asset Management Inc. bought a new stake in shares of Sonic Automotive during the 2nd quarter valued at about $208,000. Finally, Fifth Third Bancorp boosted its position in shares of Sonic Automotive by 2,981.1% during the 1st quarter. Fifth Third Bancorp now owns 4,067 shares of the company’s stock valued at $279,000 after acquiring an additional 3,935 shares during the last quarter. 46.92% of the stock is owned by institutional investors.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a U.S.-based automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, maintenance and repair services, replacement parts, and collision-repair services. Sonic Automotive also operates EchoPark Automotive, a used-vehicle business focused on offering pre-owned vehicles and related finance and service products through dedicated retail locations.

Founded in 1997 by automotive entrepreneur O.