Sonic Automotive, Inc. (NYSE:SAH) Given Consensus Recommendation of “Hold” by Brokerages

Shares of Sonic Automotive, Inc. (NYSE:SAH) have been assigned an average rating of “Hold” from the ten analysts that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation and four have given a buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $77.75.

Several analysts have recently commented on SAH shares. JPMorgan Chase & Co. reduced their price target on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research report on Friday, January 16th. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a research note on Thursday, November 6th. Wall Street Zen cut Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 13th. Finally, Stephens decreased their target price on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday.

Insider Buying and Selling at Sonic Automotive

In related news, major shareholder Paul P. Rusnak bought 48,540 shares of the company’s stock in a transaction that occurred on Friday, February 13th. The stock was purchased at an average price of $59.92 per share, for a total transaction of $2,908,516.80. Following the acquisition, the insider owned 5,088,519 shares of the company’s stock, valued at approximately $304,904,058.48. This trade represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Over the last three months, insiders have purchased 100,000 shares of company stock worth $5,994,472. Company insiders own 42.65% of the company’s stock.

Institutional Inflows and Outflows

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

Sonic Automotive Trading Up 3.1%

Shares of SAH stock opened at $66.56 on Monday. The company has a current ratio of 1.02, a quick ratio of 0.27 and a debt-to-equity ratio of 1.68. Sonic Automotive has a twelve month low of $52.00 and a twelve month high of $89.62. The company’s 50-day moving average price is $62.61 and its 200-day moving average price is $68.80. The stock has a market cap of $2.27 billion, a price-to-earnings ratio of 19.63 and a beta of 0.93.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings data 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 firm 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 21.56% and a net margin of 0.78%.Sonic Automotive’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.51 earnings per share. As a group, equities analysts predict that Sonic Automotive 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. Stockholders of record on Friday, March 13th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, March 13th. Sonic Automotive’s dividend payout ratio is currently 44.84%.

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 in multiple transactions in February, raising his stake to roughly ~5.1M shares; repeated insider purchases at ~\$60 signal board-level confidence and likely supported buying interest. 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, which can attract income-focused investors and help support the share price.
• Positive Sentiment: Record gross profit highlighted — Management pointed to record gross profit in Q4, suggesting operational improvements that could underwrite margin recovery if sustained. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — The Q4 call transcript and slides were posted for deeper review (F&I, EchoPark/used-vehicle trends and inventory commentary are areas analysts will parse for guidance changes). Earnings Call Transcript
• Neutral Sentiment: Analyst views remain mixed — Needham reaffirmed a buy and a $90 target while Stephens trimmed its target to $67 and is at equal weight; mixed research keeps near-term consensus ambiguous and can amplify volatility. The Fly: PT Change
• Negative Sentiment: Slight Q4 miss and revenue pressure — Q4 EPS of $1.52 missed consensus by $0.01 and revenue of $3.87B trailed estimates (~$3.94B); revenue fell ~0.6% YoY and net margin remained thin, giving short-term bears ammunition about demand and margin durability. Zacks: Q4 Miss
• Negative Sentiment: Structural concerns flagged by analysts — Commentary and follow-up pieces note elevated debt levels, tariff exposure and margin risks that could cap the stock’s near-term upside absent clearer sales/margin improvement. Zacks: How to Approach Post-Q4

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.