Paul Rusnak Buys 7,827 Shares of Sonic Automotive (NYSE:SAH) Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak acquired 7,827 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The stock was purchased at an average price of $59.96 per share, for a total transaction of $469,306.92. Following the completion of the transaction, the insider owned 5,026,565 shares in the company, valued at $301,392,837.40. The trade was a 0.16% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Large 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 opened at $64.56 on Friday. Sonic Automotive, Inc. has a 52 week low of $52.00 and a 52 week 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 stock has a market cap of $2.21 billion, a price-to-earnings ratio of 19.04 and a beta of 0.93. The company has a 50-day moving average price of $62.58 and a two-hundred day moving average price of $68.89.

Sonic Automotive (NYSE:SAH) last released 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). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.56%. The business had revenue of $3.87 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same period last year, the firm posted $1.51 EPS. The business’s quarterly revenue was down .6% on a year-over-year basis. Analysts forecast that Sonic Automotive, Inc. will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.52 annualized dividend and a dividend yield of 2.4%. Sonic Automotive’s dividend payout ratio is presently 41.08%.

Sonic Automotive News Roundup

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

• Positive Sentiment: Large insider accumulation — Paul P. Rusnak bought multiple blocks of shares in February (totaling tens of thousands across filings), increasing his stake to ~5.1M shares; repeated buys from a major holder tend to support 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 a ~2.4% yield and a ~41% payout ratio that can attract income-oriented buyers.
• Positive Sentiment: Record gross profit flagged on the call — Management highlighted record gross profit in Q4, supporting a margin-recovery narrative despite top-line pressure. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — Slides and the full earnings call transcript are posted for deeper analysis of F&I, used-vehicle trends and inventory; analysts will parse these for guidance and margin drivers. Earnings Call Transcript
• Neutral Sentiment: Analyst mix — Needham reaffirmed a Buy and a $90 target (large upside vs. current levels), showing bullish conviction from some desks. Benzinga: Needham Reaffirmation
• Negative Sentiment: Q4 slight miss — Sonic reported $1.52 EPS (missed consensus by $0.01) and revenues of $3.87B (below estimates ~ $3.94B), with revenue down ~0.6% YoY and low net margins (~0.9%); this gives short-term bearish talking points on demand. Zacks: Q4 Miss
• Negative Sentiment: Price-target trim by Stephens — Stephens cut its target to $67 and set an Equal Weight rating, which is a near-term headwind for sentiment versus higher targets. The Fly: Stephens Cut

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently modified their holdings of SAH. Y Intercept Hong Kong Ltd acquired a new position in Sonic Automotive in the 3rd quarter valued at approximately $647,000. Jackson Creek Investment Advisors LLC grew its holdings in shares of Sonic Automotive by 311.2% during the 3rd quarter. Jackson Creek Investment Advisors LLC now owns 23,571 shares of the company’s stock valued at $1,794,000 after acquiring an additional 17,839 shares in the last quarter. CWA Asset Management Group LLC acquired a new position in shares of Sonic Automotive in the third quarter worth $2,006,000. Bryce Point Capital LLC purchased a new stake in shares of Sonic Automotive during the second quarter worth $793,000. Finally, Brandywine Global Investment Management LLC boosted its position in Sonic Automotive by 30.3% during the second quarter. Brandywine Global Investment Management LLC now owns 94,468 shares of the company’s stock valued at $7,551,000 after purchasing an additional 21,960 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have commented on SAH. Needham & Company LLC reissued a “buy” rating and set a $90.00 target price on shares of Sonic Automotive in a research note on Thursday. Morgan Stanley set a $68.00 price objective on shares of Sonic Automotive in a research note on Monday, December 8th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Finally, Citigroup raised 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $77.75.

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.