Paul Rusnak Acquires 18,738 Shares of Sonic Automotive (NYSE:SAH) Stock

Sonic Automotive, Inc. (NYSE:SAH) major shareholder Paul Rusnak acquired 18,738 shares of the stock in a transaction dated Thursday, February 5th. The stock was acquired at an average cost of $59.98 per share, for a total transaction of $1,123,905.24. Following the purchase, the insider directly owned 5,018,738 shares in the company, valued at approximately $301,023,905.24. The trade was a 0.37% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Major shareholders that own 10% or more of a company’s shares are required to disclose their sales and purchases with the SEC.

Sonic Automotive Trading Up 2.6%

Shares of NYSE:SAH opened at $64.56 on Friday. The stock has a market capitalization of $2.21 billion, a price-to-earnings ratio of 19.04 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 debt-to-equity ratio of 1.68, a quick ratio of 0.27 and a current ratio of 1.02. The company has a 50 day moving average price of $62.58 and a 200 day moving average price of $68.89.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings results 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 company had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.94 billion. Sonic Automotive had a net margin of 0.78% and a return on equity of 21.56%. Sonic Automotive’s quarterly revenue was down .6% on a year-over-year basis. During the same period in the prior year, the company posted $1.51 EPS. On average, research analysts anticipate that Sonic Automotive, Inc. will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

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

Trending Headlines about Sonic Automotive

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

Analyst Ratings Changes

A number of research firms have commented on SAH. Morgan Stanley set a $68.00 price objective on shares of Sonic Automotive in a research note on Monday, December 8th. Barclays reduced their price target on shares of Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 21st. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 13th. Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research report on Thursday, November 6th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $77.75.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SAH. Y Intercept Hong Kong Ltd acquired a new stake in shares of Sonic Automotive in the third quarter worth $647,000. Jackson Creek Investment Advisors LLC raised its holdings in Sonic Automotive by 311.2% in the 3rd quarter. Jackson Creek Investment Advisors LLC now owns 23,571 shares of the company’s stock worth $1,794,000 after acquiring an additional 17,839 shares during the period. CWA Asset Management Group LLC acquired a new position in Sonic Automotive during the 3rd quarter worth $2,006,000. Bryce Point Capital LLC bought a new stake in Sonic Automotive during the second quarter valued at about $793,000. Finally, Brandywine Global Investment Management LLC grew its position in shares of Sonic Automotive by 30.3% in 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 owned by institutional investors and hedge funds.

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.