Stephens Has Lowered Expectations for Sonic Automotive (NYSE:SAH) Stock Price

Sonic Automotive (NYSE:SAH) had its price target cut by equities researchers at Stephens from $68.00 to $67.00 in a research note issued on Thursday, Marketbeat reports. The brokerage presently has an “equal weight” rating on the stock. Stephens’ price target indicates a potential upside of 0.66% from the company’s previous close.

Other research analysts also recently issued research reports about the company. Morgan Stanley set a $68.00 target price on Sonic Automotive in a report on Monday, December 8th. Needham & Company LLC reaffirmed a “buy” rating and issued a $90.00 price target on shares of Sonic Automotive in a research note on Thursday. Zacks Research upgraded Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a research report on Monday, December 29th. Finally, JPMorgan Chase & Co. reduced their target price 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. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $77.75.

Sonic Automotive Trading Up 3.1%

Shares of SAH opened at $66.56 on Thursday. The firm’s 50-day moving average price is $62.61 and its 200-day moving average price is $68.86. The firm has a market capitalization of $2.27 billion, a price-to-earnings ratio of 19.63 and a beta of 0.93. 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 1-year low of $52.00 and a 1-year high of $89.62.

Sonic Automotive (NYSE:SAH) last released its quarterly earnings results on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). Sonic Automotive had a return on equity of 21.56% and a net margin of 0.78%.The company had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same period in the previous year, the company earned $1.51 earnings per share. Sonic Automotive’s quarterly revenue was down .6% on a year-over-year basis. Sell-side analysts anticipate that Sonic Automotive will post 6.14 EPS for the current year.

Insider Activity at Sonic Automotive

In related news, major shareholder Paul P. Rusnak bought 11,481 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were purchased at an average cost of $59.95 per share, with a total value of $688,285.95. Following the completion of the purchase, the insider owned 5,100,000 shares in the company, valued at approximately $305,745,000. The trade was a 0.23% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders acquired 100,000 shares of company stock valued at $5,994,472 over the last 90 days. Corporate insiders own 42.65% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds have recently bought and sold shares of the company. Royal Bank of Canada grew its position in Sonic Automotive by 37.1% during the 1st quarter. Royal Bank of Canada now owns 13,946 shares of the company’s stock valued at $795,000 after purchasing an additional 3,777 shares during the last quarter. AQR Capital Management LLC raised its holdings in Sonic Automotive by 13.6% in the first quarter. AQR Capital Management LLC now owns 23,310 shares of the company’s stock worth $1,328,000 after buying an additional 2,793 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Sonic Automotive by 5.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock worth $504,000 after buying an additional 483 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Sonic Automotive by 124.9% in the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after buying an additional 197,336 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Sonic Automotive by 15.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company’s stock valued at $2,204,000 after buying an additional 5,286 shares during the last quarter. Institutional investors own 46.92% of the company’s stock.

Sonic Automotive News Summary

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.